Advertisement
Advertisement

ETH Could Drop Lower as the Percentage of Ethereum Addresses in Profit Declines

By:
Hassan Maishera
Updated: Jan 10, 2022, 10:24 UTC

Ether could record further losses in the short term as the percentage of Ethereum addresses currently in profits declines.

Ethereum FXEMPIRE

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.

 

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.

ETH is trading below its 50-day EMA. Source: FXEMPIRE

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.

About the Author

Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.

Did you find this article useful?

Advertisement