Ethereum

2024

when

Verge

<ul>
 <li aria-level="1">Only 61% of Ethereum holders are in profit after the recent market drop, signaling potential sell-offs.</li>
 <li aria-level="1">The “In/Out of the Money” indicator reveals the proportion of investors in profit, loss, or break-even.</li>
</ul>
Recent data from IntoTheBlock reveals that only 61% of Ethereum holders remain in profit after the latest market downturn. This represents a notable decline compared to earlier in the year, when over 90% of Ethereum addresses were profitable during a price rally.&nbsp;
The metric used to assess this profitability is known as the “Historical In/Out of the Money,” which examines the acquisition price of Ethereum for each wallet and compares it to the current market price.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4ca.png" alt="📊" class="wp-smiley" style="height: 1em; max-height: 1em;"> 61% of Ether holders are currently in profit.
 During the recent bear market, the percentage of profitable holders dropped to a low of 46%, while after the 2017 cycle, it fell to just 3%.
 This comparison reveals two key insights:
 Increased Resilience: Ethereum's current… <a href="https://t.co/GqfIA7tgAi" rel="noopener noreferrer nofollow">pic.twitter.com/GqfIA7tgAi</a>
 — IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1835606210004861414?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 16, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Addresses where the acquisition price is lower than the current price are considered “in the money” or profitable. On the contrary, those holding Ethereum at a higher cost than the current market price are labeled “out of the money.” Meanwhile, wallets holding Ethereum at a break-even point, with acquisition and current prices equal, are categorized as “at the money.”
Historically, when a large percentage of holders are in profit, it increases the likelihood of sell-offs, as investors may decide to cash out. This behavior often coincides with market tops. Conversely, market bottoms tend to occur when more holders are at a loss, with profit sellers already exhausted.
The <a href="https://www.ethnews.com/is-ethereum-eth-on-the-verge-of-a-major-sell-off-what-the-reserve-spike-tells-us/" rel="noopener noreferrer nofollow">current drop</a> to 61% profit holders could be indicative of a broader market trend. In the 2022 bear market, the “in the money” metric bottomed at 46%, while the 2018 bear market saw a dramatic low of just 3%.&nbsp;
These figures highlight how Ethereum has previously reacted to <a href="https://www.ethnews.com/ethereum-foundation-modulates-market-liquidity-through-strategic-eth-sales/" rel="noopener noreferrer nofollow">bearish conditions</a>. The data suggests that further declines in profitability could signal an eventual market recovery, as witnessed in previous cycles.
Given <a href="https://www.ethnews.com/ethereums-bullish-forecast-analysts-anticipate-a-eth-staggering-48-rally-invest-now/" rel="noopener noreferrer nofollow">Ethereum’s historical patterns</a>, monitoring this metric can provide insights into future price movements, especially during volatile periods like the current one. Whether Ethereum’s recent profitability drop will lead to a market bottom remains to be seen, but the data points to similar trends from past bear markets.

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The current price of Ethereum (ETH) is $2,340.92, showing a 1.95% increase. The day’s range for ETH is between $2,264.29 and $2,388.63. Over the past 52 weeks, ETH has fluctuated between $1,523.24 and $4,092.28, indicating significant volatility.
The post <a href="https://www.ethnews.com/is-ethereum-on-the-verge-of-collapse-only-61-of-holders-are-still-in-profit/" rel="noopener noreferrer nofollow">Is Ethereum on the Verge of Collapse? Only 61% of Holders Are Still in Profit!</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Is Ethereum on the Verge of Collapse? Only 61% of Holders Are Still in Profit!

ETHNews

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