The brutal bear market in cryptocurrencies over the past few months has had a serious impact on the price and profitability of ETH. The price of Ethereum has been stuck in a sideways range lately, and many ETH holders have been unlucky about it. According to data from Glassnode, the percentage of Ethereum addresses in profit has now fallen to its lowest level in 5 months.
Percentage of addresses in green drops to 55.414%
Back in 2021, when the price of ETH was at its all-time high, the majority of addresses were in a comfortable position. Now, two years later, for the new investors who bought at higher prices, it was too long to wait for their positions to go green again.
Glassnode, a crypto analytics platform, reports The percentage of Ethereum addresses in the green while measured against 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 people who currently hold ETH are at a loss. Along the same lines, the number of lucrative titles for him Projection to its lowest level since March this year, standing at 563,11171,899 at present.
Transfer of exchanges from ETH
The amount of ETH held on cryptocurrency exchanges has also fallen to its lowest level in more than 5 years. This means that ETH is available for trading on exchanges, which may affect the price and liquidity. Traders withdraw ETH from exchanges and keep it in private digital wallets.
The decline could also be linked to a high level of stakes in the ETH 2.0 deposit contract. The data shows that the majority of ETH held by large investors is now converting ETH into contracts, which indicates that interest in ETH is growing. This decrease in supply, along with an increase in mainstream interest in ETH, could drive the price higher if demand remains strong.
Ethereum drops below $1,700
Meanwhile, Ethereum broke below a critical price support earlier this week. The price fell below $1,700 to $1,630 yesterday, marking its lowest value since March 16th. The decline in price and profitability was largely attributed to negative sentiment around rising inflation concerns and general weakness in the cryptocurrency market recently.
ETH has since recovered and is now trading at $1,720, looking to retest the $1,800 resistance again. Of course, if $1,700 fails to hold, Ethereum could drop further to test the support at $1,400 or even $1,300. A drop below $1,700 again would be very bearish and see the profitability ratio drop further.
Ethereum price recovers above $1,700 | Source: ETHUSD on TradingView.com
Featured image from The Cryptoknowmist, chart from TradingView.com
