ETH Network Profitability Dips Sharply

The second-most valuable digital currency, Ethereum ($ETH) witnessed a sharp decline in profitability across its network after the crypto asset lost almost 30% of its value within the past two weeks. According to Glassnode, an on-chain analytics platform, the total number of $ETH addresses in profit touched 47.5 million on Tuesday, the lowest level in one month.

The total number of Ethereum addresses that are suffering from a loss crossed the mark of 38 million today, the highest level in more than four weeks. In terms of price, $ETH saw strong volatility in the last few weeks.

After touching an all-time high of over $4,800 in November 2021, Ethereum dipped by more than 75% in the following eight months. During the first half of August, the digital asset witnessed some recovery and regained the price level of $2,000 for the first time since May 2022.

However, the recent price dip has accelerated the liquidation of long $ETH trading positions across the network. Ethereum currently has a market cap of $193 billion.

Bitcoin Network

Similar to $ETH, the Bitcoin network has also suffered from the recent price correction. According to Glassnode, sentiment across the BTC network is still negative.

“The 2022 bear market carries on and has clearly taken a toll on the aggregate Bitcoin investor base. Despite not seeing any widespread loss of conviction amongst the HODLers, as signaled by lifespan metrics in decline, the bulls still cannot establish a meaningful uptrend. The psychology of investor spending patterns remains firmly in the bear market territory, as rallies are sold, and exit liquidity is taken at or around cost basis levels. Given the current remarkably low active user base, it could be considered impressive that the $20k level has held up to date,” Glassnode highlighted in its latest weekly on-chain analysis report.