Ether (ETH) has lost more than 11% of its value in the past six days, falling from $4,000 to $3,500, but a vast majority of its holders are still in profit.

According to a tweet by crypto market intelligence platform IntoTheBlock, around 89% of ETH holding addresses are currently in the green.

89% of ETH Holders in Profit

Ether’s price began to slump on March 13 after the Dencun upgrade. Recall that the upgrade was launched to slash Ethereum-based layer-2 solutions’ transaction fees by 10x or more and improve the network’s scalability.

CryptoPotato reported that the Ethereum network’s activity and supply dynamics stayed positive during the first hours after the upgrade. The total supply of ETH continued to fall, the number of daily transactions rose to high levels, and more ETH was staked.

However, analysts’ warnings of a price correction manifested within 24 hours. Ether left the $4,000 zone and fell to less than $3,700.

With 89% of ETH holders still in profit despite the price decline, IntoTheBlock discovered that the biggest potential on-chain sell volume is at $3,700, where more than 991,000 addresses acquired 4.35 million ETH.

ETH Price Outlook

If ETH rebounds from its current trading range of $3,500, the asset could soar past $4,000 to record a new high in the coming weeks but a further plunge could lead the asset below $3,000. Analysts believe ETH could find support around the $3,500 region and initiate a fresh rally. However, a continued decline in its price could push its support level to the $3,181 and $2,966 levels.

Whether ETH rallies in the short term or not, one major factor that could propel a surge in the coming weeks is the approval of spot Ethereum exchange-traded funds (ETFs) from the United States Securities and Exchange Commission (SEC). The agency has delayed its decision on several applications for the products until May 23.

Interestingly, asset manager VanEck believes spot Ethereum ETFs could become bigger than their Bitcoin counterparts if the SEC eventually greenlights their launch. The firm said Ethereum ETFs could attract more demand because they have a market size as big as Bitcoin ETFs.

Meanwhile, Standard Chartered Bank recently predicted that ETH could be worth $8,000 by the end of 2024 and $14,000 by 2025.