ETH Price Hike Leaves 66% Investors in Profit!

The recent trends of Ethereum (ETH) price hike has brought a sigh of relief to the crypto market. But the situation is still not at its absolute best. A new report has claimed that only 66% of the current Ethereum investors are in profits. This partial ray of hope is caused due to Ethereum’s recent price fall. It observed a fall from an all time high of more than USD 4000.

Crypto investors who bought Ethereum between $ 2,920 and $ 3,080 still incur losses from their investments. The situation can improve if Ethereum’s price will continue to recover. Industry experts have noted that investors still experiencing losses might consider selling their crypto holdings due to panic. This panic selling could put further downward pressure on the price of Ethereum.

ETH Price Hike: Looking at Two Aspects

While the crypto market has observed a massive whirlwind of volatility in the recent times, Ethereum has not been an exception. The second largest cryptocurrency by market share has seen a recent upsurge in its prices, but further examination reveals a complex image.

A substantial chunk of 66% ETH investors are currently in profits. But there is another side of the same coin. A huge percentage of its investors are still under the waters. This dichotomy is a reminder of the huge risk factor that comes hand-in-hand with the high rewards of the crypto investing business. 

Investors who had invested in Ether during its 2021’s bullish performance when it was flying at its best heights are currently in massive losses. However, investors who had gone with the long-term investment plan in crypto have benefited from the recent Ethereum price hike. Those who bought it during market correction have also received a substantial appreciation.

What is Expected from Ethereum?

Nonetheless, the changes are presented in a highly variable form and the Ethereum ecosystem remains consistently exposed to an impressive level of growth and stability. There is consciousness and growth in the communication frequencies and transactional frequencies. 

Skeptics have noted the emergence of new decentralized applications (dApps) and generation of new addresses. This trend depicts the possibility of incoming profits from Ethereum investments.

Blockchain explorer Etherscan has disclosed the figures that will support this narrative. It has declared a sharp rise in the number of smart contracts and daily active addresses. This leads to a conclusion that the user base of Ethereum investors is growing.

For this reason, several factors explain the hike in Ethereum price. The overall bull run of the crypto market due to the increasing rate of institutional adoption and the number of retail investors has been helpful in the endeavor.

Walking the Road Ahead

The greatest rule of the crypto investing must be ‘Don’t trust too much.’ Another major problem associated with Crypto market is relatively high susceptibility to manipulation and trading based on speculation. Ethereum or any other crypto should be invested in after careful consideration of some factors as they are high risk and return investments.

Short-term fluctuations can make the investors begin to get impatient and consequently, sell their electronic currencies. But from a broader perspective, Ethereum investment seems to be optimistic.

Instead of investing all the money at once today in the risky crypto investment for instance, an investor can plan the long term investment, and take a portion of this investment and diversify it.