On-chain data shows that 44.2% of all Ethereum investors are now carrying their coins at a loss, a sign that the bottom may be close for the asset.
The metric determines whether an investor is in profit or loss by looking at their address history to check for the average price at which they acquired their coins. Naturally, if the asset’s current spot price is less than a holder’s cost basis, then that particular holder is carrying their coins at a net profit.
Similarly, the cost basis being equal to and less than the spot price would imply that the investor is breaking even on their investment and holding at a loss, respectively.
Now, here is a chart that shows the trend in the Historical In/Out of the Money indicator for Ethereum over the past few years:
IntoTheBlock has only listed the data for the Ethereum investors in losses, as this is the number of interest in the current discussion. The combined percentage of the investors breaking even and carrying profits can also be deduced from this value, as the total percentage must add up to 100%.
Today, the indicator’s value is at 44.2%, meaning that almost half of the Ethereum user base is holding their coins at losses. Generally, the more the investors get into profits, the more likely they become to sell to harvest those gains.
If a similar loss percentage is hit with the bottom this time, ETH would first suffer from some more downtrend so that enough investors drop underwater.
Ethereum has continued to move flat recently; as of this writing, it trades at about $1,600.
