The plunge in Ethereum (ETH) addresses in profit has reached a significant 53%, indicating a sharp decline in profitability for investors. This news is a major concern for those holding Ethereum, as it suggests a potential decrease in market value. Find out more about this alarming trend and its implications for the cryptocurrency market.
Title 1: Ethereum Addresses in Profit Decline as Price Drop Continues
The blockchain intelligence platform Glassnode has reported that the percentage of Ethereum addresses currently in profit has dropped to approximately 53.5%. This decline is directly tied to the market performance of Ether, which has experienced a price drop of around 13% in the last 30 days. According to Glassnode’s estimation, the last time Ethereum addresses in profit dipped below 54% was on January 12, 2023. The percentage was even lower towards the end of 2022 and the beginning of this year.
On the other hand, there have been instances when the figure spiked above 70%. In May, as ETH approached the $2,000 price mark, and in July, when it reached that milestone, the percentage of addresses in profit exceeded 70%. However, in recent times, Ether’s value has stagnated at around $1,600, waiting for a significant event to spark a revival.
Potential events that could trigger a bull rally in the overall market include the Federal Reserve halting its aggressive interest rate policy, Ripple winning its lawsuit against the US SEC, or the official approval of a spot Bitcoin ETF in America. If any of these events occur in the near future, the percentage of ETH addresses in profit could soar well above the 70% level.
However, it is important to note that the current bearish trend may persist or even intensify, leading to an increase in the number of Ethereum addresses experiencing paper losses.
Title 2: Will Ethereum’s Downtrend Continue or Will It Bounce Back?
The decline in the percentage of Ethereum addresses currently in profit has raised concerns among investors and traders. As the price of Ether has fallen by approximately 13% in the past 30 days, the profitability of many addresses has been affected. This downward trend is reflected in Glassnode’s data, which reveals that the last time Ethereum addresses in profit were below 54% was in January 2023.
However, it’s not all doom and gloom for Ethereum. In previous instances, the percentage of addresses in profit has surpassed 70%, especially during bullish periods when the price of ETH was surging towards significant milestones. In May, it was approaching the $2,000 mark, and in July, it reached that milestone. These instances offer hope that Ethereum’s profitability could rebound in the future.
Currently, Ether’s value has consolidated around $1,600, along with other cryptocurrencies that are waiting for a major development to trigger a market-wide revival. Potential catalysts for a bull rally include a change in the Federal Reserve’s aggressive interest rate policy, a favorable outcome for Ripple in its lawsuit against the US SEC, or the approval of a spot Bitcoin ETF in America.
While these events could bring about a significant increase in the percentage of ETH addresses in profit, it’s important to consider that the ongoing bearish trend might persist or even worsen. This would result in more Ethereum addresses experiencing losses on paper. Therefore, investors and traders should closely monitor market conditions and be prepared for various scenarios.
Overall, the profitability of Ethereum addresses depends on market dynamics and significant developments in the cryptocurrency space.