ETH Supply in Profit Ratio Drops to Lowest Level Since November 2023
CryptoNewsTerminal Staff20 Aug, 2024
ETH Supply in Profit Ratio Drops to Lowest Level Since November 2023
The ETH supply in profit ratio has dropped to 85.66%, its lowest level since November 2023, according to The Block. This indicates that a decreasing number of ETH holders are currently holding profitable positions. The decline in the ETH supply in profit ratio has been attributed to the recent drop in ETH price. Over the past three weeks, the price of ETH has fallen by more than 30%, causing many holders to realize losses on their investments. Despite the recent price drop, ETH is still trading about 15% higher year-to-date. However, the share of the ETH supply that is in profit has fallen by about 3% over the same period. This suggests that while some investors are still holding profitable ETH positions, a growing number of holders are now underwater. It's important to note that the ETH supply in profit ratio is a backward-looking metric that measures the profitability of existing ETH holders. It does not necessarily predict future price movements. However, it can provide insights into the current market sentiment and the potential for further price declines.
