Recent crypto market recoveries have been led by Ethereum. Because Ethereum’s price had risen following an update about the Merge and that the market was recovering in the same way, this is why. ETH’s price had quickly grown to one-month highs and had seen its value grow beyond $1,700. This was a clear indicator that ETH investors are ahead of the curve when it comes profit.
Profitability of ETH increases
Following the May market crash, Ethereum’s profitability had declined. The market was under intense selling pressure as Ethereum’s profit margin plunged to less than half for the first time since June. But, recovery would occur just as rapidly as the crash. The majority of holders would then be back in profit.
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This means that more than half the ETH investor are seeing profit. According to data from IntoTheBlock at the time this article was written, 57% of ETH investors are currently in the money. This has led to increased trust in cryptocurrency, as 41% are experiencing losses and 2% remain in neutral.
A fascinating statistic regarding digital assets is its number of long term holders. The fact that 62% have kept their coins more than a calendar year means that nearly all the investors in profit are long term holders. It also reinforces the notion that crypto is best for those with diamond fingers.
Ethereum Investors Make Profit
Ethereum has seen a lot more selling as a result of the price recovery. It is normal for investors to want to make some profits after June’s crash. The last week has witnessed an increase in the number of exchanges.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
Exchange dataThe graph shows that in the week to date, $3.2 BILLION worth of ETH has been transferred onto exchanges. This is compared to $2.9 BILLION that was withdrawn. 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.
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It seems that things are changing on this front. ETH net flows for the past day. $188.8 million was transferred to exchanges and $199.8 million went out. This is not a huge amount, but it shows that investors are starting to accumulate as the market has fallen.
As of writing, ETH was trading at $1.655 The second largest cryptocurrency, ETH is still worth more than $200 billion.
Featured image taken from CoinQuora. Chart via TradingView.com
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