2022 has been a rollercoaster year for Ethereum investors. It has been successful in some aspects and gut-wrenching in others. The crypto market rally had seen Ethereum hit a two-month high, after trending as low as $1,000 for a long time. This was followed by a significant increase in the number of investors who were actually making profits from their investments.
57% in investor profit
If anything, Ethereum’s profitability over the years has been a major bull case for the digital asset. Even now, during a brutal crypto winter, cryptocurrency remains one of the best performing assets, with a higher-than-average number of investors currently seeing returns on their investments.
Data from IntoTheBlock Shows that a total of 57% of all ETH wallets are seeing profit even at current prices. This puts it ahead of the majority of the market, which is seeing most of its holders falling in losses at current prices. This puts about 40% of all investors in the loss zone, and only 3% sitting in neutral territory. This neutral 3% are those whose holdings are currently held at the price at which they purchased the token.
57% of ETH holders in profit | Source: IntoTheBlock
To top it all, IntoTheBlock data also shows a significant correlation between the time the tokens are held and the profit margin on them. Most ETH investors (65%) have held their coins for more than a year. This makes them a subset of investors who are likely to profit.
Now, this does not mean that short-term holders are not seeing any gains, as the current price is much higher than it was a few months ago. Even so, the bull market still leans toward a greater chance of long-term holders making profits.
More upside for Ethereum?
Ethereum is still holding positions above $1,500, placing it near its recent local peak above $1,600. This sustained level indicates bull dominance in the market and could lead to further gains in the near term. But he is taking only Ethereum and not the whole market.
ETH price recovers above $1,600 | Source: ETHUSD on TradingView.com
Considering that the FOMC meeting will be in full swing soon, volatility is expected in the market. Now, volatility can be either upward or downward, but is expected later due to rising rates of inflation during this time.
Nevertheless, sentiment remains strong for ETH holders. As ETH is now trading above its 100-day moving average, it has effectively outperformed sellers. The short to medium term sentiment is now strongly leaning towards the 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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