The post Ethereum (ETH) Supply in Profit Drops to Lowest Since November 2023 appeared on BitcoinEthereumNews.com.

The number was at 94% three weeks ago, but it has fallen significantly since then. This provides further evidence that many ETH purchasers are undercutting their cost basis. This week, the 7-day moving average (MA) of the percentage of supply in profit hit 85.66%. This metric gauges the extent to which the circulating supply of Ethereum (ETH) is now valued more than its previous acquired or transferred price. Since November 2023, it has not been this low. This number was at 94% three weeks ago, but it has fallen significantly since then. Which might be attributable, in part, to the drastic decrease in the price of ETH that happened during the recent market-wide selloff. Undercutting Their Cost Basis Even if the profit proportion of ETH supply is 3% lower than it was at the beginning of the year. The price of ETH is almost 15% higher at the time of writing. This would mean that most of the Ethereum supply bought in 2024 happened in the second quarter and later. When the price of Ethereum was still below $4,000 and hadn’t broken through new highs. This provides further evidence that many ETH purchasers are undercutting their cost basis by purchasing ETH at the current price this year. To be clear, this number does not necessarily mean that the majority of ETH holders had lost money so far this year, even if it hit rock bottom in 2024. Investors who purchased Ethereum (ETH) at the beginning of the year are probably still making money since its price is now 15% higher than it was before. Holdings of ETH that were purchased in 2023 at far lower prices are probably still doing very well.  Nonetheless, this low does indicate that investors who bought around the 2024 highs could be in over their…

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Filed under: News - @ August 20, 2024 11:17 pm