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The cryptocurrency market is teetering on the edge of what would be its worst month since May. Since the beginning of December, when Ethereum was trading as high as $4,780, ETH has lost 20% of its value.
Over the last 48 hours alone, Ethereum has lost more than 8% of its value. The decline has sent the price of ETH tumbling down to $3,756.
The 48 hour price chart for Ethereum (ETH). Source: Tradingview
Regardless of Ethereum’s poor performance in December, 80% of all ETH wallets are currently operating on a profit, significantly higher than its major competitor, Bitcoin, of which 70% are.
According to IntoTheBlock, only 14% of all holders are operating at a loss, while 6% of are holders are neither profiting nor losing.
ETH’s strong performance in 2021 is a major reason for why most ETH holders are still experiencing at a profit. Since the start of 2021, Ethereum has gained by more than 400% in value.
The year-to-date price chart for Ethereum (ETH). Source: Tradingview
Despite Ethereum’s overall performance in 2021, a worrying trend for investors is brewing on the horizon. The recent decline has seen ETH exchange inflows surpass its outflows. Outflows have now hit a four-year low with experts speculating on a possible bearish trend.
On the Flipside
- While most ETH holders are operating on a profit, Ethereum whales have begun to dump at the ATH. The number of wallets holding at least 1,000 ETH dropped to 6,292 – its lowest number since April 2017.
Why You Should Care
Building up to its transition to the Proof of Stake model, Ethereum has steadily amassed gains, with ETH largely outperforming Bitcoin in 2021.
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