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The brutal bear market in crypto over the past few months has taken a severe toll on the price and profitability of ETH. Ethereum price has been stuck in a sideways range lately, and many ETH holders have been unlucky with it. According to data from Glassnode, the percentage of Ethereum addresses in profit has now hit a 5-month low.
The percentage of addresses in Green drops to 55.414%
Back in 2021, when the price of ETH was at its all-time high, most addresses took a comfortable position. Now, two years later, for new investors who bought in at higher prices, it has been a long wait for their positions to turn green again.
Glassnode, a crypto analytics platform, reports The percentage of Ethereum that is in the green as measured by the 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 holding ETH are currently at a loss. In the same vein, the number of profitable addresses is dropped Currently standing at 56,311,171.899, at its lowest point since March this year.
Removing ETH from Exchanges
The amount of ETH held on cryptocurrency exchanges has also dropped to its lowest level in 5 years. This means there is less ETH available for trading on exchanges, which can affect price and liquidity. Traders are withdrawing their ETH from exchanges and keeping it in private digital wallets.
The drop could also be linked to the all-time high stakes in the ETH 2.0 deposit contract. The data shows that the majority of ETH held by large investors is now moving to ETH contracts, indicating that interest in ETH is on the rise. This decreasing supply, combined with increasing mainstream interest in ETH, could drive prices higher if demand remains strong.
Ethereum declined below $1,700
Meanwhile, Ethereum declined below a key price support earlier this week. Yesterday the price dropped below $1,700 to $1,630, which is its lowest price since March 16. The main reason for the decline in price and profitability is the negative sentiment around rising inflationary fears and the recent weakness in the crypto market.
ETH has since recovered and is now trading at $1,720, looking to retest the $1,800 resistance once again. Of course, if $1,700 fails to hold, Ethereum could decline further to test the $1,400 or $1,300 support. A drop below $1,700 would again be very bearish and the profitability percentage would decline further.
Ethereum price recovers above $1,700 | Source: ETHUSD on TradingView.com
Featured image by The Cryptoknowmist, chart from TradingView.com
