Over 82% of Ethereum investors bought the cryptocurrency above its current market price, according to on-chain data. Indicators show the situation may soon get worse.
According to data from on-chain research and analytics firm IntoTheBlock, 30.21 million ether addresses, equivalent to nearly 83% of the total amount of ether addresses, are “out of the money,” meaning these investors bought ETH above its current market price.
About 2.1 million addresses, 5.76%, is “in the money,” or bought below ETH’s current price. Over 4 million addresses, or 11% of the total, are “at the money” or breaking even. Ether’s price has dropped over 90% from its all-time high in late 2017, when it traded for $1,400.
After hitting its all-time high, the price of ether started plunging – just like the price of most other cryptoassets – to ultimately hit an $80 low in December 2018. Since then it has recovered, and the second-largest cryptocurrency by market cap is currently trading at $131 after dropping 1.5% in the last 24-hour period.
IntoTheBlock data notably shows that most Ethereum addresses were in the money when the cryptocurrency was trading at $250, which could mean that if ether doubles over the next few months most investors would stop being underwater. It’s worth noting that about 4 million ETH addresses, roughly 10% of the total, acquired the cryptocurrency between $714 and $1,340.
However, its indicators show a bearish signal. The number of large transactions on the Ethereum blockchain – those of over $100,000 – have dropped sharply suggesting more near-term downside for ETH.
Source: IntoTheBlock
Notably, some of ether’s use cases appear to be gaining popularity. As CryptoGlobe reported earlier this month Coinbase Wallet has made it easier for its users to lend cryptocurrency and earn interest on Ethereum’s decentralized finance applications.
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