Key Points
- Ethereum has seen a downward trend recently, but 61% of holders are still in profit.
- Increasing leverage and declining new addresses suggest potential market volatility.
Despite the recent bearish trends in the market, 61% of Ethereum holders are still in profit.
This insight, provided by market analytics firm IntoTheBlock, paints a nuanced picture of Ethereum’s current market situation.
Ethereum Holders’ Resilience
IntoTheBlock’s analysis revealed that despite the ongoing market slump, the majority of Ethereum holders are still profitable.
This resilience, compared to previous market cycles, suggests a stronger belief in Ethereum’s long-term value.
For instance, in the 2017 market cycle, only 3% of addresses remained in profit.
This resilience among holders may suggest a strong foundation for Ethereum, even during market downturns.
On-Chain Data Insights
To better understand Ethereum’s current market position, it’s essential to look at key on-chain data.
One such data point is the estimated leverage ratio, which has seen a significant increase recently.
A rising leverage ratio can indicate increased speculative activity and potential risk, leading to higher price volatility.
The number of new Ethereum addresses is another important metric.
Data shows a decline in new addresses, which could be a bearish indicator, suggesting reduced interest in the network.
This decrease in network activity, coupled with the rising leverage ratio, can contribute to the ongoing downward pressure on Ethereum’s price.
