Take Ethereum Profits or Wait Out the Holding Period? What the Price Jump Means for Your Tax Bill

Following Ethereum's intraday surge to $2,664.81 on September 11, 2026—driven by $216.41 million in net inflows into US spot Ether ETFs, predominantly BlackRock's ETHA fund—investors in Germany face critical tax considerations before realizing gains. German tax law under Section 23 of the Income Tax Act dictates that crypto assets held for more than one year are entirely tax-free upon disposal, while gains realized within twelve months are taxed at an individual's personal income tax rate unless total annual private disposal gains remain under the 1,000 euro exemption threshold. An analysis of 721 trading days reveals that 75% of tax-free Ethereum tranches purchased between September 2024 and September 2025 are currently underwater compared to the €2,179 price level, while 62% of taxable tranches acquired over the past year hold unrealized gains. Because tax accounting applies on a per-wallet basis using FIFO or individual allocation, selling requires careful tranche verification to avoid realizing non-deductible long-term losses or unnecessary tax burdens.