Ethereum has been at the forefront of the crypto market recovery in recent times. This is because the price of Ethereum had rallied following an important update regarding the upcoming Merge, and the market had recovered in kind. ETH’s price had quickly grown to one-month highs and had seen its value grow beyond $1,700. This had no doubt put a good number of ETH investors ahead when it comes to profit.
ETH Profitability Grows
Ethereum had seen its profitability decline following the market crash that rocked June. For the first time in a year, the percentage of Ethereum holders who had been in profit had declined to below half, causing intense sell pressure in the market. However, the recovery would come just as quickly as the crash, and the majority would be flung into profit once more.
Related Reading | Bitcoin Bounces Off Consolidation Range, What Lies In Store?
This is currently the case where more than half of all ETH investors are currently seeing profits. According to data from IntoTheBlock, ETH investors who are in the money come out to a total of 57% at the time of writing. It has come with increased confidence in the cryptocurrency as only 41% of all holders are currently experiencing a loss, with 2% sitting tentatively in neutral territory.
Another interesting metric regarding the digital asset is the number of long-term holders it boasts. With 62% of all investors have held their coins for more than a year, it means that almost all of those in profit are long-term holders, once more promoting the belief that diamond hands get rewarded the most in crypto.
Ethereum Investors Take Profit
With the recovery in price, there has been a lot of selling going on in Ethereum. This is understandable, given that investors would want to take some profit after the June crash. This has seen the exchange inflows increase over the last week.
ETH falls below $1,700 | Source: ETHUSD on TradingView.com
Exchange data shows that for the last week alone, $3.2 billion in ETH flowed into exchanges compared to the $2.9 billion that flowed out. This shows that there are more sellers than buyers in the current market, which would explain the downtrend that has seen ETH’s price decline below $1,700.
Related Reading | Elevated Bitcoin Open Interest Levels Puts Market In Vulnerable Position
However, it does seem like the tide is starting to turn on this front, given the ETH net flows for the past day. A total of $188 million in ETH had flowed into exchanges, while $199.8 million had flowed out. Not a large margin, but it means investors are beginning to accumulate as the price has declined.
ETH is trading at $1,655 at the time of this writing. It remains the second-largest cryptocurrency with a market cap of more than $200 billion.
Featured image from CoinQuora, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Image and article originally from www.newsbtc.com. Read the original article here.