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
