For investors in the space, the profitability of digital assets like Ethereum is important. With the decline following the bull market, a large number of ETH investors saw a significant drop in the profitability of their holdings. It fell below 50% when the price of ETH fell below $1000 last month. However, with the recovery in early August, Ethereum rose as high as $2,000 and is now mostly back in the profit.
56% of investors in profit
The price of ETH was rejected at the $2,000 level, which saw the price fall further into the $1,500 territory. However, the digital asset would not last long at this point as it would briefly regain $1,700 before falling back below $1,700. But despite the decline, most ETH investors are still seeing green in their portfolios.
IntoTheBlock shows that 56% of all Ethereum investors are currently in profit. This is a significant difference from the numbers that were recorded in June. At the current price, only 44% of investors are experiencing a loss, while 4% are in neutral territory, meaning they bought their tokens at the current price.
ETH price falls below $1,600 | Source: ETHUSD on TradingView.com
As always, long-time holders are rewarded in this regard. The data also shows that 62% of all investors held their coins for more than 1 year. From this, it can be easily deduced that these long-term holders see more gains compared to shorter-term holders.
Will the price of Ethereum recover?
As the weekend approaches, the price of Ethereum is already starting to react to the reduced liquidity in the market. The price fell sharply during trading hours on Friday, which marked another drop below $1,600, but it is still holding up nicely at this point.
Short-term bullish sentiment is also holding up quite well, with digital assets still sitting firmly above the 50-day moving average. There are not too many worries about the decline yet, as it looks like a quick correction. The buying pressure is also holding against the selling pressure, bringing it to the neutral 50% point.
However, the 4-hour chart shows a bearish base. With six consecutive red closes, ETH is likely to test $1,500 before the end of the day. But if the bulls find support before this point, then a rebound is expected.
Featured image from CNBC, chart from TradingView.com
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