Ethereum

What can be expected if the declining momentum at ETH subsides?

Many of the 66.34 million ETH holders have been inactive for a long time. Therefore, the volume remained low despite the price increase. On the other hand, the causes and effects of this condition are even greater.

ETH has calmed down

While the overall market is recovering relatively faster, the performance of ETH is still rather lackluster.

The altcoin king barely made any additional profits and this made the rally significantly slower than other coins, including bitcoin.

While BTC rose more than 10.5% in 6 days, ETH is still at 8.67% after 9 days. This is because all the gains made in 2-3 days disappear within 1 day.

ETH price campaign | The source: TradingView

The volatile movement in prices prevents investors from moving assets too much. For the same reason, buying and selling activities are kept to a minimum.

As a result, the 7-day average trading volume has dropped to a 22-month low.

ETH band | The source: Glass knot

The HODL behavior is also reflected in the fact that the ETH change rate (speed) falls to an 18-month low.

The speed of ETH in the network | The source: mood

In fact, ETH whales (which together hold more than 21.3% of the supply) have not moved in a while. Their average volume has dropped from $ 1.2 billion to $ 700 million.

But this hibernation of real investors protects them from serious losses. Price movements will eventually recover, but getting out at the wrong time will result in a loss of profits.

This is also the reason why the network has made almost no profit or loss in the last 7 months.

Real net profit / loss (ETH) | The source: mood

Currently, 63.4 million addresses are profitable and only 4.7 million investors are losing, including 3.85 million investors who bought at the all-time high of $ 4,878.

Percentage of profit / loss for ETH investors (green / red) | Source: Intotheblock

So when the mood of accumulation picks up again, new investors will only benefit when the downtrend begins to lose strength.

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