Ethereum has once again fallen below $4,000 after struggling to maintain its value above this point. After hitting its all-time high in early November, it has been dropping in price. This has not meant that investors have fallen into loss following the fall from its ATH. In reality, a vast majority of ethereum holders have continued to be in profit as sell-offs continue across the market.
Ethereum Holders In Profit
Data from IntoTheBlock shows an interesting representation of where ethereum holders currently sit. Currently, 80% of all ETH holders remain in profit. This is significantly higher than the percentage of bitcoin holders who are still in profit at current prices. The latter has 70% of all holders in profit and has a higher percentage of investors that are in loss.
Related Reading | Why Bitwise’s CIO Believes Regulation Is Good For The Crypto Market
For ethereum, only 14% of all holders are recording a loss. This suggests that this percentage of holders purchased the digital asset higher than the current price, and as such, their holdings are in the negative. For bitcoin, this number sits at 22% of all holders who are at loss.
Majority of ETH holders remain in profit | Source: IntoTheBlock
Those holders who are neither in profit nor loss came out to a total of 6%. These ETH holders are presumed to have purchased their coins at the current value of ethereum and as such are in the neutral territory.
The data also shows that 59% of all ETH holders have held their coins for more than a year, 34% have held on between 1 to 12 months, and only 7% of total holders have had their coins for less than a month.
Inflows Surpass Outflows
For the longest time, ethereum outflows had dominated as the accumulation trend grew among investors. This had sent exchange receivers plummeting to yearly lows. However, this trend has started to change with the downtrend.
Related Reading | Ethereum Whales Are Increasingly Bullish On This Metaverse Token
Exchange inflows have been higher than outflows for the last seven days. While outflows have come out to $9.2 billion on a seven-day moving average, inflows for the same time period have come to a total of $9.31 billion.
There is not much difference between these two metrics but it still goes to show how ethereum holders are looking towards the digital asset. As sentiment has skewed toward bearish, more investors are selling off their coins in anticipation of even lower prices. The difference between inflows and outflows shows that more investors are moving their ETH to exchanges to sell than those that are moving them out to hold for the long term.
ETH price falls below $4,000 | Source: ETHUSD on TradingView.com
Featured image from Blockchain News, chart from TradingView.com