Metric loss

Ethereum could be at its lowest according to this metric: IntoTheBlock

Arman Shirinyan

Ethereum could bottom out as asset profitability drops below 70%

According to the latest data provided by InTheBlockEthereum could bottom out, depending on the rate of return.

As the rate of return suggests, around 70% of Ethereum investors are holding the asset at a profit, which is considered a relatively high rate and not reaching the extreme levels we saw in 2021, when profitability of Bitcoin and Ethereum was close to 90%.

Usually it is possible to determine local lows and highs by comparing price action with different rates of return. Usually profitability consolidates around 90%, 70% and 50%. Anything below these rates usually moves erratically.

The 70% profitability of Ethereum also correlates with the local support of $3,000, which is often seen as psychological support for investors. Unfortunately, Ethereum’s latest price action suggests it is continuing to decline as it lost 7% of its value just a few days ago.

Ads

But despite the prolonged downtrend on Ethereum, the high profitability of the asset allows it to constantly attract new investors unlike small cryptocurrencies, such as Shiba Inu, whose profitability has fallen below 50%, making the unprofitable asset for the majority of investors.

If we compare the evolution of Ethereum’s profitability to the daily trading chart, the majority of ETH investors most likely opened their positions in the $2,500-$3,000 range. The second largest cryptocurrency in the market was trading in the range in August and June during the first bull cycles in the crypto market.

At press time, Ethereum is trading at $2,900 and maintaining selling pressure directly on the newly formed trendline support which has yet to be tested.