Investors in this space are concerned about the profitability of digital assets like Ethereum. A large number of ETH investor have witnessed their profits drop dramatically after the bear market. When ETH prices fell below $1,000, it had dropped below 50%. Ethereum gained $2,000 in August’s recovery, so the majority of the market is now back in profit.
56% of Investors in Profit
The $2,000 price for Ethereum had been rejected. This had caused the price to drop once again, falling back down to $1,500. But the digital asset would be short-lived as it would quickly regain $1700 and then fall below $1700. Despite the drop, most ETH investors still see green in their portfolios.
IntoTheBlock indicates that currently 56% Ethereum investors are in profit. This represents a significant difference to June’s numbers. Only 44% of investors report a loss at the current price. 4%, on the other hand, are neutral, meaning that they have bought their tokens at the current rate.
Price of Ethereum drops below $1600| Source: ETHUSD on TradingView.com
Long-term owners are being recognized in this way, just as they have always been. Data also showed that 62% had kept their coins longer than one year. It is clear that longer-term owners make more than shorter-term ones.
How will the Ethereum price recover?
The market’s reduced liquidity is already affecting Ethereum’s price as the weekend draws near. Although the price fell sharply during Friday’s trading hours, it is still holding steady at this point.
Bullishness in the short term is holding strong, and the digital asset continues to be well above its 50-day moving mean. As it appears to be a short correction, the drop isn’t causing too much concern. The selling pressure has been held back by buying pressure and it is now at a neutral point of 50%.
But, the 4 hour chart indicates a bearish base. It’s likely that ETH will reach $1,500 today with six consecutive closes of red. If bulls could find support at this stage, then there is a chance of a rebound.
CNBC feature image and chart by TradingView.com
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