Ethereum Investors Clamor To Take Profits As Profitability Explodes
02 August 2022 - 9:00AM
NEWSBTC
Ethereum has been at the forefront of the crypto market recovery in
recent times. This is because the price of Ethereum had rallied
following an important update regarding the upcoming Merge, and the
market had recovered in kind. ETH’s price had quickly grown to
one-month highs and had seen its value grow beyond $1,700. This had
no doubt put a good number of ETH investors ahead when it comes to
profit. ETH Profitability Grows Ethereum had seen its profitability
decline following the market crash that rocked June. For the first
time in a year, the percentage of Ethereum holders who had been in
profit had declined to below half, causing intense sell pressure in
the market. However, the recovery would come just as quickly as the
crash, and the majority would be flung into profit once more.
Related Reading | Bitcoin Bounces Off Consolidation Range,
What Lies In Store? This is currently the case where more than half
of all ETH investors are currently seeing profits. According to
data from IntoTheBlock, ETH investors who are in the money come out
to a total of 57% at the time of writing. It has come with
increased confidence in the cryptocurrency as only 41% of all
holders are currently experiencing a loss, with 2% sitting
tentatively in neutral territory. Another interesting metric
regarding the digital asset is the number of long-term holders it
boasts. With 62% of all investors have held their coins for more
than a year, it means that almost all of those in profit are
long-term holders, once more promoting the belief that diamond
hands get rewarded the most in crypto. Ethereum Investors Take
Profit With the recovery in price, there has been a lot of selling
going on in Ethereum. This is understandable, given that investors
would want to take some profit after the June crash. This has seen
the exchange inflows increase over the last week. ETH falls below
$1,700 | Source: ETHUSD on TradingView.com Exchange data shows that
for the last week alone, $3.2 billion in ETH flowed into exchanges
compared to the $2.9 billion that flowed out. This shows that there
are more sellers than buyers in the current market, which would
explain the downtrend that has seen ETH’s price decline below
$1,700. Related Reading | Elevated Bitcoin Open Interest
Levels Puts Market In Vulnerable Position However, it does seem
like the tide is starting to turn on this front, given the ETH net
flows for the past day. A total of $188 million in ETH had flowed
into exchanges, while $199.8 million had flowed out. Not a large
margin, but it means investors are beginning to accumulate as the
price has declined. ETH is trading at $1,655 at the time of this
writing. It remains the second-largest cryptocurrency with a market
cap of more than $200 billion. Featured image from CoinQuora, chart
from TradingView.com Follow Best Owie on Twitter for market
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