ETH Could Drop Lower as the Percentage of Ethereum Addresses in Profit Declines
Ether, the native token of the Ethereum ecosystem, is down by 35% from the all-time high of $4,878 it achieved on November 10. The recent losses could be extended as the bears remain in control of the market.
20 Percent of Ethereum Addresses are Holding ETH at a Loss
Recent data revealed by Glassnode shows that at least 20% of ethereum addresses are holding Ether tokens at a loss. This implies that approximately 80% of Ethereum addresses are in profits.
Previous 13-month low of 80.161% was observed on 09 January 2022
— glassnode alerts (@glassnodealerts) January 10, 2022
According to Glassnode, the 80.106% of Ethereum addresses in profits represents a 13-month low. The last time such a figure was recorded was on January 9, 2021.
Ether has been in a bearish trend since it reached its all-time high above $4,800 two months ago. At press time, ETH is trading just above $3,100 after defending the support level above the $3,000 mark over the weekend.
The decline in the number of Ethereum addresses with ETH profits could trigger further sell-off. An increase in sell-off of ETH could ultimately result in the cryptocurrency suffering further losses over the coming days and weeks.
ETH Could Drop Below $3k
Ether has been underperforming over the past two months. Since the start of the year, ETH has lost more than 14% of its value as the broader cryptocurrency market underperforms. The technical indicators show that ETH is underperforming, and further losses are on the card.
The ETH/USD daily chart is currently looking bearish. ETH is currently trading at $3,153, below its 50-day moving average of $3,975. Furthermore, the MACD line is within the negative territory, while the 14-day RSI of 30 shows that ETH is currently oversold.
If the current market momentum is maintained, ETH could lose the support level at $3,000 over the next few hours. Unless there is an extended bearish performance, ETH should defend the second major support level around $2,800 in the short term.
However, if the bulls regain control, ETH could test the resistance level at $3,370 before the end of the day. The second major support level above $3,500 should cap further upward movement in the short term.