Ethereum Capitulation Phase May Be Over, Bulls Eye $2,000

Ethereum holders have faced one of the worst times in the asset's history, but on-chain data suggests that this prolonged suffering may eventually serve as a foundation for an upcoming bullish phase.

The Swissblock Supply in Profit/Loss model indicates that Ethereum has been in 'capitulation' for nearly six months. Since late January, more coins have been held at a loss than at a profit, with approximately 45.7 million ETH in losses compared to just 31.6 million in gains.

The market is only starting to recover from months of pressure, as evidenced by the average breakeven price rising back toward $1,880. Ethereum's price has made a remarkable comeback from its capitulation low in June, which was near $1,500, according to the daily chart.