ETH addresses in profit reach 5-month low.
The recent bear market in the cryptocurrency industry has had a significant impact on the price and profitability of Ethereum (ETH). The value of Ethereum has remained stagnant recently, resulting in many ETH holders experiencing losses. According to Glassnode, which is a crypto analytics platform, the percentage of Ethereum addresses that are currently in profit has dropped to a 5-month low. In 2021, when the price of ETH was at its highest, most addresses held a comfortable position. However, new investors who purchased ETH at higher prices are still waiting for their positions to become profitable again.
Glassnode’s data shows that the percentage of Ethereum addresses that are currently in the green, while calculated over a 7-day moving average, is now at a 5-month low of 55.414%. This means that more than 44% of ETH owners are currently experiencing losses, and the number of profitable addresses has dropped to its lowest point since March 2021.
The amount of ETH held on cryptocurrency exchanges has also dropped to its lowest level in over 5 years. This has resulted in less ETH being available for trading on exchanges, which could affect the price and liquidity. Traders are withdrawing their ETH from exchanges and holding it in private digital wallets. This decline in supply, combined with increasing mainstream interest in ETH, could drive the price higher if demand remains strong.
Ethereum broke below critical price support earlier this week and plunged below $1,700 to $1,630, marking its lowest value since March 2021. This is largely attributed to negative sentiment around rising inflation fears and overall weakness in the crypto market recently. However, Ethereum has since recovered and is now trading at $1,720, with an eye on retesting the $1,800 resistance once more. If $1,700 fails to hold, Ethereum could fall further to test support at $1,400 or even $1,300. A drop below $1,700 again would be very bearish and see the profitability percentage drop further.
