Of the 66.34 million Ethereum holders, many of them have been sluggish for some time. As a result, the volume remained at a low level despite the price increase. But the causes and effects of this situation go beyond looks.
Ethereum calmed down …
Although the broader market is recovering relatively faster, Ethereum’s performance has been lukewarm at best.
The altcoin king has lost all profits, which has resulted in the rally of altcoin being significantly slower than other coins, including bitcoin.
While the king coin rose by over 10.5% in six days, ETH is still at 8.67% even after nine days. This is because all price gains registered over 2-3 days are nullified within one day.
Ethereum price promotion | Source: TradingView – AMBCrypto
This fluctuation in price action prevents investors from moving their assets too much. Buying and selling are minimal for the same reason.
As a result, the 7-day average transaction volume has fallen to its lowest level in 22 months.
Ethereum volume | Source: Glassnode
This HODLing behavior is also confirmed by the fact that the rate at which Ethereum changes hands has also been cut to an 18-month low.
Ethereum speed | Source: Santiment – AMBCrypto
In fact, the Ethereum whales, which cumulatively hold over 21.3% of all supplies, have been sitting in silence for some time. Their average volume has dropped from $ 1.2 billion to $ 700 million.
But this hibernation of investors actually protects them from heavy losses. Price action will eventually recover, but getting out at the wrong moment would cause investors to lose profits.
That is also why the network has only made profits for the past seven months.
Ethereum Gains / Losses | Source: Santiment – AMBCrypto
Currently, 63.4 million names are either in / at the money (profits) and only 4.7 million investors are out of money (losses), including the 3.85 million investors who bought at the all-time high of $ 4,811.
Ethereum investors in / without money | Source: Intotheblock – AMBCrypto
As the mood of accumulation rises again, new investors would only make profits in the future as the downtrend begins to lose strength.
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