July 17, 2024


Ethereum investors have had a rollercoaster year in 2022. It has been both successful in some aspects and gut-wrenching in others. After trending in the low $1,000s for a long time, the crypto market rally had seen Ethereum rise to two-month highs. What followed was a marked increase in the number of investors that were actually making a profit from their investments.

57% Of Investors In Profit

If anything, the profitability of Ethereum over the years has been a major bull case for the digital asset. Even now, during a brutal crypto winter, the cryptocurrency remains one of the best-performing assets with a higher-than-average number of investors currently seeing profit on their investments.

Data from IntoTheBlock shows that a total of 57% of all ETH wallets are currently seeing profit even at current prices. This puts it ahead of the majority of the market which is seeing the majority of its holders being plunged into loss at current prices. It puts about 40% of all investors in the loss territory, and only 3% are sitting in the neutral territory. This neutral 3% are those whose holdings are currently sitting at the price they purchased the tokens at.

Ethereum holders in profit

57% of ETH holders in profit | Source: IntoTheBlock

For all of this, the IntoTheBlock data also show an important correlation between the amount of time the tokens were held and the profit margin on them. The majority of ETH investors (65%) have held their coins for more than one year. This makes them the subset of investors that are likely to be in profit.

Now, this does not mean that short-term holders are not seeing any profit given that the current price is considerably higher than where it was a few months ago. Nevertheless, the bull case still skews towards long-term holders being more likely to make a profit.

More Upside For Ethereum?

Ethereum is still maintaining its position just above $1,500, putting it close to its recent local peak of just above $1,600. This sustained level points toward the bull dominance in the market and this could lead to more upside in the short term. But that is only taking Ethereum alone and not the whole market.

Ethereum price chart from TradingView.com

ETH price recovers above $1,600 | Source: ETHUSD on TradingView.com

Given that the FOMC meeting will be in full swing soon, there is expected market volatility incoming. Now, volatility can either be for the upside or the downside, but the latter is expected during this time due to the rising inflation rates.

Nevertheless, hold sentiment for ETH holders remains strong. Since ETH is now sitting above its 100-day moving average, it has effectively beaten back the sellers. Short to medium-term sentiment now skews strongly towards hold which suggests that any downside will be met with strong support at $1,500.

Featured image from Yahoo Finance, chart from TradingView.com

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