The data shows that nearly 70% of Ethereum holders are at a loss, suggesting that ETH may face huge selling pressure on the way to recovering previous highs.
According to the statistics of the encryption analysis platform IntoTheBlock, about 68% of the Ethereum addresses are in the “out of the money” state (the average purchase price is higher than the current spot price).
This is in stark contrast to Bitcoin. After a recent surge, 76.7% of Bitcoin holders are profitable (ie, the average purchase price in the address is lower than the current spot price).
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The historical maximum price from 0 to ETH is $1,432. In each price segment, the number of addresses displayed in red is fairly evenly distributed. These groups are all lossy ETH holders (calculated at the average purchase price per address):
• $200- $230 – 10.6% (3.44 million addresses)
• $ 230- $ 290 – 12.1% (3.92 million addresses)
• $290 to $414 – 12% (3.87 million addresses)
• $414-568 – 12% (3.83 million addresses)
• $ 568- $ 779 – 10.7% (3.45 addresses)
• $ 779- $ 1,342 – 10.5% (3.38 addresses)
For the bulls, this may not be a good sign. Currently only 27% of Ethereum addresses are profitable. As the price of ETH recovers, the holder of the loss may sell ETH in hand, creating a large amount of selling pressure on a regular basis.
The road to returning to the country may be very long
The “break-even” chart can help us understand more intuitively – a significant number of holders need ETH to exceed their highest level of history in order to achieve an investment balance. The chart below shows that approximately 17% of addresses require a breakeven of $1,342 in Ethereum, with millions of addresses requiring ETH prices over $2684.
Want HODL, still want to sell?
Although the Ethereum rebounded weakly (down 86% from the highest point in history), there is a very important indicator that may allow ETH to see hope.
The number of long-term holders (holding 12 months or more) has increased every month last year, which may indicate that people are increasingly confident about the broad prospects of ETH. The number of ETHs locked in DeFi (decentralized finance) has recently reached a record high, and Ethereum seems to be strengthening its position as the most reasonable form of currency.