67% of ETH holders still profitable but here’s what’s putting pressure on the price

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Ethereum, which has man­aged a return on invest­ment (ROI) of 8700%, has cul­ti­vat­ed a lot of damp­ened mar­ket sen­ti­ments late­ly. In fact, fol­low­ing the market’s down­fall, Ethereum has lost over 51% of its val­ue since its ATH of $4,878.26 three months ago.

A profitable majority

And yet, data by IntoThe­Block seems to sug­gest that 67% of Ethereum hold­ers are In the Mon­ey. This essen­tial­ly means that the token is prof­itable for these investors at recent levels.

2% of all hold­ers are At the Mon­ey lev­el or break­ing even with­out any prof­it or loss. On the con­trary, the rest of the hold­ers are suf­fer­ing loss­es as the cur­rent price is less than the aver­age pur­chase cost for these holders.

Source:Intotheblock

And, look­ing at the con­cen­tra­tion of large hold­ers, whales that hold more than 1% of the total cir­cu­lat­ing sup­ply stand at 42%.

Hav­ing said that, a recent release by San­ti­ment on-chain ana­lyt­ics agency also point­ed out that the alt­coin hold­ings of top non-exchange whales are on a rise. In fact, the address­es are at an All-Time High (ATH) of 26.22 mil­lion ETH.

What are the whales doing?

It is also worth not­ing here that an Ethereum Whale just pur­chased 500 mil­lion SHIB tokens. If we look at the last 24 hours, WhaleStats show close to 7000 ETH going in the top 1000 whale wal­lets and about 29,000 ETH mov­ing out of these whale wal­lets. This could mean that these big hold­ers could be diver­si­fy­ing their Ethereum hold­ings into oth­er alts.

Source: Whalestats

What’s bringing the price down?

Amid the price retreat, co-founder of Cobo Wal­let, Shenyu, has not­ed that if Ethereum falls fur­ther down to $1,900, $600 mil­lion on Mak­er­DAO will be liq­ui­dat­ed, Chi­nese jour­nal­ist Coin Wu report­ed. A fur­ther fall to $1,400 can see $1.7 bil­lion in sim­i­lar liquidations.

One of the rea­sons point­ed out for the pres­sure on Ethereum is NFT issuers. Thou­sands of Ethereum tokens have report­ed­ly been trans­ferred from NFT mar­ket­places like OpenSea to exchanges, adding to the exchange inflows.

How­ev­er, that’s not all.

The Net Trans­fer Vol­ume from/to All Exchanges stood close to ‑59,000 on 24 Jan­u­ary. This was a sign of more ETH flow­ing out of the exchanges than com­ing in.

Source: Glassnode

On the oth­er hand, if we look at the week end­ing 21 Jan­u­ary, Coin­shares Dig­i­tal Asset Fund Flows are still neg­a­tive for Ethereum in the sixth week. There is still noth­ing pos­i­tive for the alt on this front as the total out­flow stood at $16 mil­lion as of last week.

Is a bigger shakeup incoming?

Ethereum’s price might be react­ing to dif­fer­ent fac­tors at this time, but the mar­ket should be brac­ing for oth­er reg­u­la­to­ry changes that might be pos­si­bly com­ing this year. Recent­ly, Hay­den Adams, the founder of the largest decen­tral­ized exchange pro­to­col on Ethereum, Uniswap, took to Twit­ter to say that JP Mor­gan Chase has closed his bank accounts “with no notice.”

In response, for­mer CFTC com­mis­sion­er said that it is

“Like­ly a shad­ow de-bank­ing of cryp­to by @federalreserve or @USOCC bank exam­in­ers, with direc­tion from the top.”

There­fore, the cryp­to-mar­ket might be see­ing big­ger changes, espe­cial­ly with Pres­i­dent Biden’s exec­u­tive order report­ed­ly on the way next month.

Also Read: With cryp­to win­ter back, the White House is mak­ing big plans for the sector



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