A popular altcoin project’s price may be heading for bottoms as the profitability ratio drops below 70%, according to data provided by on-chain analytics firm IntoTheBlock.
IntoTheBlock: According to this metric, Ethereum could dip to the bottom
It seems that around 70% of Ethereum investors are in 2021, which is considered a strong rate of return and Bitcoin and Ethereum profitability is close to 90%. also profits from investments that do not approach the extreme levels we have witnessed. The pricing action with variable profitability ratios can often be used to create local lows and highs on a chart. Profitability is usually fixed at 90 percent, 70 percent and 50 percent, respectively. Anything below these speeds is generally unstable in its movement.
70% of Ethereum investors are in profit, for crypto investors associated with $3,000 in local support, commonly referred to as “psychological support.” However, Ethereum’s latest price behavior suggests that Ethereum, which lost 7 percent of its value just a few days ago, will continue to depreciate.
However, Ethereum’s high profitability allows it to continue to attract new investors despite the prolonged downtrend. This makes the asset unprofitable for the majority of investors, unlike smaller cryptocurrencies like the Shiba Inu, whose profitability drops below 50%.
Let’s compare with other altcoin projects
If we look at Ethereum’s daily trading chart and compare it with the change in profitability, we can see that the vast majority of ETH traders are most likely starting their positions between $2,500 and $3,000. During the first positive cycles in the cryptocurrency market that began in August and June, the second largest coin in the market traded in the range of about 6% to 8%.
Ethereum’s price is currently $2,900 and the selling pressure is right next to the recently formed trendline support that has yet to be questioned.
Ethereum gives negative signals in on-chain metrics
According to the Defi Llama data we included in the cryptokoin.com analysis, the TVL rate of the Ethereum network has leveled off at 27 million ETH in the last 30 days. Currently, traders fear that losing the descending channel support at $2,850 could lead to a stronger price drop.
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