Ethereum has been at the forefront of the crypto market recovery lately. Indeed, the price of Ethereum had recovered following an update important regarding the upcoming Merger, and the market had picked up accordingly. The price of ETH had quickly reached 1-month highs and saw its value break above $1,700. This had arguably put a good number of ETH investors ahead in profit.
ETH profitability increases
Ethereum had seen its profitability decline following the stock market crash that shook the month of June. For the first time in a year, the percentage of Ethereum holders making a profit had fallen below half, causing intense selling pressure in the market. However, the recovery was as quick as the crash, and the majority of Ethereum holders were once again making profits.
This is currently the case, since more than half of investors in ETH make profit. According to data from IntoTheBlock, ETH investors who are in the money stand at a total of 57% at the time of writing. This has been accompanied by increased confidence in the crypto, 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 holding their coins for more than a year, this means almost everyone making a profit is a long-term holder, further reinforcing the belief that diamond hands are the most rewarded in cryptocurrency.
Ethereum Investors Take Profits
With the price recovery, Ethereum has seen a lot of selling. This is understandable, given that investors want to take profits after the June crash. This has seen exchange inflows increase over the past week.
Exchange data shows that in the past week alone, $3.2 billion worth of ETH flowed into exchanges, compared to $2.9 billion flowing out. This shows that there is more sellers than buyers in the current marketwhich would explain the downtrend that saw the price of ETH drop below $1,700.
However, it looks like the tide is starting to turn on this front, given the net flows of ETH over the past day. A total of $188 million in ETH was injected into the exchanges, while $199.8 million was taken out. It’s not a big margin, but it does mean that investors are starting to accumulate as the price has fallen.
ETH is trading at $1,655 at the time of writing. It remains the second largest cryptocurrency with a market capitalization of over $200 billion.