- 61% of Ethereum holders remained in profit despite recent price drops, demonstrating the market’s resilience.
- Rising leverage and declining new addresses suggest potential market volatility ahead.
Ethereum (ETH) has been on a downtrend in recent weeks, breaking below several key price levels.
This decline culminated in a more than 10% decrease in its value over the past month, with the cryptocurrency now trading at around $2,298, down 2% in the past week alone.
Despite this bearish movement, market analysis firm IntoTheBlock has provided some key insights knowledge on Ethereum and the state of its holders that can offer a more nuanced view of the asset’s current situation.
Ethereum Holders: 61% Profit
According to a recent analysis by IntoTheBlock, 61% of Ethereum holders have remained profitable despite the current market slump.
IntoTheBlock revealed that this figure reflects a degree of resilience among Ethereum holders, compared to previous market cycles.
Source: IntoTheBlock
The analyst firm drew a parallel with the previous year, noting that during the recent bear market, the percentage of profitable holders fell to a low of 46%.
After the 2017 market cycle, the percentage of beneficiary addresses fell to just 3%.
This indicates that the current cycle demonstrates a stronger belief in the long-term value of Ethereum.
IntoTheBlock notes that this resilience reflects increased confidence among holders, which may suggest a stronger foundation for Ethereum even during periods of market downturn.
According to IntoTheBlock, compared to the 2019-2020 period, when profitable addresses fell below 10%, the current situation suggests that any potential slowdown may be less severe.
Data on chain
To better understand Ethereum’s current market position, it’s essential to look at some of its key on-chain data sets. One such data is the estimated debt ratio.
According to CryptoQuantEthereum’s estimated leverage ratio has seen a notable increase in recent months, sitting at 0.355 at press time.
Source: IntoTheBlock
The estimated leverage ratio measures the degree of leverage used in the derivatives market, by comparing the amount of open interest to the total amount of coins held on the exchanges.
An increasing debt ratio may indicate an increase speculative activitysuggesting that traders may be taking more risk.
This trend can lead to increased price volatility in both directions, as leveraged positions increase the likelihood of liquidations, which can exacerbate price movements.
Besides the leverage ratio, the number of new Ethereum addresses provides insight into network activity and potential market sentiment.
Data A Glassnode survey revealed a decline in the number of new addresses. After peaking at over 126,000 on September 6, the figure has since dropped sharply to around 79,000 new addresses.
Source: Glassnode
A decreasing number of new addresses usually signals reduced participation or interest in the network, which can be a bearish indicator.
Read Ethereum (ETH) Price Prediction 2024-2025
Lower growth in the number of new addresses may imply that fewer new investors are entering the market, which could lead to reduced buying pressure.
This drop in network activity may contribute to the continued downward pressure on Ethereum’s price, especially when combined with the increasing debt-to-equity ratio.
