Profitability in digital assets such as Ethereum is important to investors in the space. With the decline following the bull market, a good number of ETH investors have seen the profitability of their holdings decline significantly. It had fallen below 50% when the price of ETH had broken below $1,000 last month. However, with the recovery at the beginning of August, Ethereum had rallied as high as $2,000, and now the majority are back in profit.
56% Of Investors In Profit
The price of ETH had been rejected at the $2,000 level, which had seen the price decline once more to the $1,500 territory. However, the digital asset would not last long at this point as it would reclaim $1,700 for a brief period before falling back down below $1,700. But even with the decline, the majority of ETH investors are still seeing green in their portfolios.
IntoTheBlock shows that there are currently, 56% of all Ethereum investors in profit. This is a stark difference from the numbers that were recorded back in June. At the current price, only 44% of investors are recording a loss, while 4% are in the neutral territory, meaning they had purchased their tokens around the current price.
ETH price falls below $1,600 | Source: ETHUSD on TradingView.com
As always, the long-term holders are being rewarded in this regard. The data also shows that 62% of all investors had held their coins for more than 1 year. From this, it is easy to infer that these long-term holders see more profits compared to shorter-term holders.
Will Ethereum Price Recover?
As the weekend approaches, the price of Ethereum is already beginning to react to the reduced liquidity in the market. The price had taken a sharp decline during trading hours on Friday, which saw it fall below $1,600 once more, but it continues to hold up nicely at this point.
Short-term bullishness also holds up quite nicely, with the digital asset still sitting firmly above the 50-day moving average. For now, there is not much concern regarding the decline, as it looks like a quick correction. Buying pressure is also holding up against selling pressure, bringing it to a neutral 50% point.
However, the 4-hour chart shows a bearish basis. With six consecutive red closes, it is likely that ETH will test $1,500 before the end of the day. But if bulls were to find support before this point, then a bounce is expected.
Featured image from CNBC, chart from TradingView.com
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