Here’s How Many Ethereum (ETH) Holders Are Profiting Amid September’s Drop

Blockchain intelligence platform IntoTheBlock has revealed a new metric showing that 61% of ETH holders are making a profit.

This record comes as Ether (ETH) and other altcoins are experiencing significant price downtrends. In the last 24 hours alone, the second largest cryptocurrency has dropped more than 4%, bringing its trading price to around $2,300.

61% of ETH holders in profit

Data from IntoTheBlock showed the historical inflow/outflow of money of the second crypto asset since 2016.

Source: IntoTheBlock

The metric shows that profits for ETH holders fell as much as 3% after the 2017 cycle. This depth is often accompanied by a significant price decline as several investors scramble to sell their ETH holdings for see the gains

Fast forward to the 2019-2020 cycle, ETH wallet profits fell below 10% as bearish trends engulfed the market. With the bull run of 2021, where ETH reached its peak value of $4,870, those with money soared to record levels at the time.

The chart also shows that ETH wallet addresses in profit plunged as much as 46% during a recent market crash earlier this year. With the percentage of profitable ETH holders currently at 61%, investors are less likely to be pressured to sell their Ether assets, benefiting overall market performance.

A bearish September

This month has seen ETH’s worst performance since February, as the asset fell back below $2,300 today.

In a recent report, Bitwise CEO Matt Hougan highlighted three possible drivers behind the downtrend in the crypto market every September. Among his reasons, he explained that risk assets like Bitcoin and other cryptocurrencies tend to perform dismally in September. The Bitwise executive added that investors typically expect the crypto market to underperform during the month, triggering the market’s performance.

Despite the current downtrend, Hougan expressed his belief that Uptober (October) will bring the bulls, driving the prices of assets like ETH to impressive heights.

Of more concern to Ethereum bulls is the ETH/BTC trading pair, which fell to a 3.5-year low. This means that ETH has been losing a lot of ground compared to the largest digital asset.

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