Percentage Of Addresses In The Green Drops To 55.414%
In 2021, when ETH was at its peak, most addresses were profitable. However, for new investors who bought at higher prices, it has been a long wait for their positions to turn green again.
Glassnode reports that the percentage of Ethereum addresses in profit over a 7-day moving average is now at a five-month low of 55.414%.
Percentage of addresses in profit drop to five-month low | Source: Glassnode on Twitter
This indicates that more than44 percent of people who own ETH are currently experiencing losses.The number of profitable addresses has droppedto its lowest point since March this year,stayingat56,311171899currently.
Moving ETH Off Exchanges
The amount of ETH held on exchanges has reached its lowest level in over 5 years. This means less ETH is available for trading, which can affect the price and liquidity. Traders are withdrawing their ETH from exchanges and holding it in private digital wallets.
This decline can also be attributed to a record high level of staking in the ETH 2.0 deposit contract.Large investors are now moving theirETH into the contract, indicating growing interestinETHstaking.This reduction insupply, combined with increasing mainstream interestinETH,could drive upthepriceifdemand remains strong.
Ethereum Plunges Below $1,700
Ethereum recently broke below critical support levels.The price droppedto$1,630 yesterday,makingitsthe lowest value since March16.Thedecline in priceand profitabilityis largely due tonegative sentiment surrounding rising inflation concerns and overall weaknessinthecrypto marketrecently.
Since then,Ethereumhas recoveredand is nowtrading at $1,720.It is looking to retest theresistanceat$1,800.If $1,700 fails to hold,the pricemay drop further,to test supportat$1 ,400or even $1300.A fallbelow$1700wouldbe very bearishand wouldfurther reduce thepercentageofprofitability.
Ethereum price recovers above $1,700 | Source: ETHUSD on TradingView.com
Featured image from The Cryptoknowmist, chart from TradingView.com
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