Percentage Of ETH Addresses In Profit Reaches 5-Month Low

Scott Matherson

2 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The brutal bear market in crypto over the past few months has taken a serious toll on ETH’s price and profitability. The price of Ethereum has been stuck in a sideways range recently, and many ETH holders have been unlucky for it. According to data from Glassnode, the percentage of Ethereum addresses in profit has now dropped to a 5-month low.

Percentage Of Addresses In The Green Drops To 55.414%

Back in 2021, when the price of ETH was at its highest, the majority of addresses held a comfortable position. Now, two years later, for new investors who bought at higher prices, the wait for their positions to go green again has been a long one.

Glassnode, a crypto analytics platform, reports that the percentage of Ethereum addresses in green while measuring over a 7-day moving average is now at a 5-month low of 55.414%.

Percentage of addresses in profit drop to five-month low | Source: Glassnode on Twitter

This indicates that more than 44 percent of the people who own ETH are currently at a loss. In the same vein, the number of profitable addresses has dropped to its lowest point since March of this year, standing at 56,311,171.899 at the moment.

Moving ETH Off Exchanges

The amount of ETH held on cryptocurrency exchanges has also dropped to its lowest level in over 5 years. This means less ETH is available for trading on exchanges, which can impact the price and liquidity. Traders are withdrawing their ETH from exchanges and holding it in private digital wallets.

The drop can also be linked to an all-time high level of staking in the ETH 2.0 deposit contract. Data shows that the majority of ETH held by large investors are now moving ETH into the contract, showing that interest in ETH staking is growing. This declining supply, coupled with increasing mainstream interest in ETH, could drive the price higher if demand remains strong.

Ethereum Plunges Below $1,700

Meanwhile, Ethereum broke below critical price support earlier this week. The price plunged below $1,700 to $1,630 yesterday, marking its lowest value since March 16. The plunge in price and profitability is largely attributed to negative sentiment around rising inflation fears and the overall weakness in the crypto market recently.

ETH has since then recovered and is now trading at $1,720, looking to retest the $1,800 resistance once more. Of course, 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.

Ethereum price recovers above $1,700 | Source: ETHUSD on TradingView.com

Featured image from The Cryptoknowmist, chart from TradingView.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.