Ethereum (ETH) has not escaped the onslaught of the entire market, finally dipping below the $1,700 territory yesterday. After this recent drop, the number of addresses holding ETH currently seeing losses has skyrocketed to a 5-month high.
According to the Glassnode analytics platform, the number of ethereum addresses experiencing losses (measured over a 7-day moving average) has reached a high of 43,815,911. This is the highest value observed since January.
This metric indicates the number of addresses that have witnessed a decline in the value of their ethereum holdings over a specified period. The recent rise suggests that a substantial portion of ethereum investors are currently facing a loss on their investments.
The growing number of losing addresses reflects a period of increased market volatility or a downward trend in the ETH price, as seen in the recent market crash. This can affect investor confidence and potentially lead to further selling pressure as people may choose to liquidate their holdings to minimize losses or lock in profits.
Also, IntoTheBlock reveals that a significant amount of ETH in circulation is currently at a loss when comparing its current value to the values at which it was purchased on-chain. The data indicates that there are losses of 65.11 million ETH, which represents 53.49% of the circulating supply.
Great ethereum whales accumulating
Additionally, Santiment, a behavioral analytics resource, revealed on June 5 that a significant amount of Ethereum has moved into self-custody and decentralized finance (DeFi) platforms. Most of these tokens have been sucked into the largest whale addresses on the network. Consequently, the top ten non-exchange addresses currently hold an all-time high of 31.8 million ETH.
This suggests a concentration of ethereum holdings in the hands of a few large entities. While it is not unusual for cryptocurrencies to display a concentration of wealth, the growing dominance of these whale addresses indicates a sustained conviction in Ethereum’s long-term prospects.
Meanwhile, ETH plunged to a low of $1,630 yesterday, marking its lowest value since March 16. Despite an attempted recovery, the asset closed the day with an alarming loss of 5.12%. This represents the biggest intraday loss for ethereum in almost a month. The asset is now trading below the $1,700 zone, leaving several addresses in losses.
Ethereum is down 6.5% in the last 24 hours, with up to three consecutive losing sessions. A negative close today would maintain the losing streak. The asset is changing hands at $1,629 at the time of reporting.
