Number Of Ethereum Addresses Losing Money Just Reached A New All-Time High

Ethereum

Antalya, Turkey - 23 December 2021: Close up of Ethereum golden coins on US dollar bills with spotlight on the Ethereum in the foreground.

Ethereum holders have been subject to uncertainty over the last few months as bulls and bears have struggled for control. With the bears winning at a much higher rate than the bulls, Ethereum holders have found their holdings have continued to lose value. This time around, the plunge has sent the number of investors losing money to a new all-time high.

Number Of Ethereum Addresses In Loss At ATH

On-chain data tracker Glassnode Alerts on X (formerly Twitter) has a shocking development regarding Ethereum addresses. According to the tracker, the number of addresses seeing losses on a 7-day moving average (MA) has jumped to its highest level ever.

This metric takes note of the price at which the ETH coins being held on addresses were last moved. Then it is compared to the current price of the altcoin to figure out if the addresses are seeing gains or losses. The metric had been rapidly climbing in 2023 due to the bear market, culminating in a new all-time high.

According to Glassnode’s report, the total number of addresses in loss is now sitting at 49,939,211.006, rising from its previous all-time high of 49,921,736.464 that was reached on September 15. If the price of ETH continues to drop, then this figure will likely hit another all-time high soon.

Number of addresses in loss hit new all-time high  Source: Glassnode

Other ETH Metrics Flashing Bearish

Ethereum’s open interest in perpetual futures contracts had also taken a hit with the price struggles. It to a one-month low $445,789,354, just weeks after hitting a previous one-month low of $450,965,900 on September 13.

Accumulation also seems to be dropping among mid-sized investors in the meantime. Glassnode also that the number of addresses holding at least 10 ETH had plunged to a 3-month low of 347,825. This suggests that these investors may be offloading their holdings to prevent more losses.

Small investors are also not left out of this trend. Another metric that tracks the number of Ethereum addresses holding at least 0.1 ETH also showed a decline in recent months. This has led to a 5-month low for the metric, with only 5,120,950 addresses holding 0.1+ ETH.

These declines come as no surprise as the ETH price had lost support above $1,600. With the bears dragging the price below $1,600, the losses for holders had climbed rapidly as the altcoin’s price fell to two-week lows.

Founder Vitalik Buterin had also made carrying a significant amount of ETH toward centralized exchanges. This has sparked speculations that the founder is selling, which in turn could influence investors to sell as well.

ETH bears take control of price | Source: 
Featured image from Blockchair, chart from Tradingview.com
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