Ethereum Addresses in Profit Drop Nearly 20% Within a Month

After surging nearly 70% in the first half of the year and approaching its all-time high of $4,300 set in early 2021, Ethereum’s value has dropped by 25% in the past month. This sharp $900 price correction has significantly reduced the number of ETH addresses in profit.

According to data from AltIndex.com, about 70% of Ethereum addresses were profitable last week, marking a 20% decline compared to a month earlier.

Lowest Share of Profitable Ethereum Addresses in 10 Months

Ethereum has experienced notable price swings in the past eight months. Starting 2024 at $2,300, the world’s second-largest cryptocurrency by market cap saw its value surge above $4,000 by mid-March, just $300 short of its February 2021 all-time high. However, the following months brought significant corrections, with ETH dropping below $3,000 in May before rebounding to $3,800 by June.

By the end of July, Ethereum’s price dipped again, falling 13% to $3,320, and early August delivered another hit. Concerns about inflation, rising U.S. interest rates, and doubts over the continuation of the 2024 crypto bull run triggered a sector-wide 20% drop in just one week.

Adding to the decline, the launch of multiple spot Ethereum ETFs prompted a “sell-the-news” reaction, further lowering Ethereum’s price. This, along with decreasing activity on the Ethereum network, pushed ETH to its lowest value in months at around $2,100. While the price recovered to roughly $2,700 last week, the percentage of profitable ETH addresses remained well below levels from a month earlier.

Data from crypto analytics platform Glassnode revealed that 69% of ETH addresses were profitable last week, down from 88% in July. This marks the lowest percentage of profitable addresses on the Ethereum network in the past ten months.

In contrast, Bitcoin, the largest cryptocurrency, showed stronger resilience, recovering quickly after its early August slump. The percentage of profitable Bitcoin addresses, which had fallen to 80%, rebounded to over 91% in the past two weeks.

Active ETH Addresses Drop by One Million in Four Months

In addition to a 20% drop in profitable addresses, Ethereum has also seen a significant decline in active addresses. Glassnode data indicated that the number of active addresses on the Ethereum network stood at around 7.8 million last week, down by one million compared to four months earlier.

The number of unique addresses holding at least 1 ETH also dropped, from 1.68 million to 1.63 million during this period. Glassnode further highlighted a decrease in high-value addresses, with 13,300 addresses holding at least $1 million in ETH as of last week—down by 2,300 from a month ago and 5,500 since March.