Ethereum has been at the forefront of the recovery in the crypto market in recent times. This is because after a significant update about the upcoming merge, the price of ethereum surged, and the market kind of recovered. The price of ETH quickly reached a one-month high and gained more than $1,700 in value. There is no doubt that a good number of ETH investors have emerged in terms of profits.
ETH profitability grows
Ethereum had seen its profitability decline after the market crash in June. For the first time in over a year, the percentage of profiting Ethereum holders fell to less than half, creating huge selling pressure in the market. However, recovery will come just as quickly as the crash, and most will be flown back into profits.
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This is currently the case where more than half of all ETH investors are currently looking at profits. According to data from IntoTheBlock, ETH investors who are in the money turned up 57% of the total at the time of writing. This comes with increased confidence in the cryptocurrency as only 41% of all holders are currently experiencing losses, with 2% sitting temporarily in neutral territory.
Another interesting metric with respect to the digital asset is the number of long-term holders it boasts. With 62% of all investors holding their coins for more than a year, this means that almost all of those in profit are long-term holders, once again fostering the belief that diamonds have a hand in crypto. Most rewarded.
Ethereum investors take profit
There is a lot of selling going on in Ethereum with the price correcting. This makes sense, given that investors would want to take some profits after the June crash. It has seen an increase in exchange flows compared to the previous week.
ETH falls below $1,700 | Source: ETHUSD on TradingView.com
exchange data shows that $3.2 billion was exchanged in ETH in the past week alone, while $2.9 billion flowed in. This suggests that there are more sellers than buyers in the current market, which would explain the downtrend that saw ETH price drop below $1,700.
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However, it looks like the tide has started to turn on this front, given that Last day’s ETH net flow, A total of $188 million in ETH flowed across exchanges, while $199.8 million was inflow. Not a huge margin, but it means investors are accumulating as prices fall.
At the time of writing, ETH is trading at $1,655. It remains the second largest cryptocurrency with a market cap of over $200 billion.
Featured image from CoinQuora, chart from TradingView.com
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