On-chain analytics firm Glassnode has revealed how the latest Ethereum cycle never reached a profitability threshold cleared in previous bull runs.
Ethereum Has Seen Its Profitability Profile Compress This CycleFrom the graph, it’s visible that the Ethereum supply sitting at a 3x profit has declined recently and hit the 11% mark. This suggests that just over a tenth of the cryptocurrency’s supply in circulation is in a significant gain at the current spot price.
As displayed in the above chart, Ethereum, Bitcoin, and other assets saw the 30-day MVRV Ratio plummet to a deep value as the market crash played out. With the rebound that has followed since then, however, the situation has improved a bit for buyers from the past month.
That said, losses continue to be significant for this group. The 30-day MVRV Ratio is currently sitting at -10% for BTC and -12% for ETH. The analytics firm explained:
When the average trader is sitting on significant losses across networks that are normally hovering at 0% (zero sum game), selling pressure often becomes exhausted as weak hands capitulate and long-term investors begin accumulating.
ETH PriceEthereum had fallen near the $1,500 level during the weekend, but the coin has since bounced back as its value is now sitting around $1,680.
