According to recent stats featured on on-chain analytics platform, Glassnode, the set number of crypto addresses that hold Ethereum and are also in profit is now on a downward spiral.
Inferences from the statistics gathered from Glassnode have revealed that the number of ETH holding addresses that are currently in a profit in the crypto market has dipped to reach a five-month all-time low.
Glassnode’s notification came through via a tweet from its official Twitter account, this tweet revealed that the number of profiting ETH holders referenced through a 7-day moving average has fallen to its five-month record low of 51,654,342.810
The last time the number of profiting Ethereum holders fell by this much was in September 2021, however, the current decline is continual according to Glassnode’s chart and there’s a possibility of lower lows.
Ethereum’s Price Decline
Ethereum which is the second most valuable cryptocurrency, only behind Bitcoin has fielded a massive dump in price value since the start of the year. Ethereum fell by over 50% of price value from its November all-time high of approximately $4,800.
The overall decline of the number one altcoin occurred in two major phases, the December decline phase, and the January decline phase. Ethereum’s 50% over price decline began in December during the December pre-Christmas sell-off rally that was accompanied by massive price dumps across all platforms in the crypto industry. Ethereum fell by approximately 17% in this period. The January decline phase was the more significant price decline phase of the two phases.
The first month of January 2022 saw a major dump across the global financial market and a declining US dollar with the equities and tech stocks underperforming globally. Also featured in the woes of January is the crypto market’s massive sell-off amidst inflation concerns, Ethereum fell by approximately 32% in this period bringing the crypto’s net price loss from November last year to date at roughly 50%.
Ethereum To Mirror Bitcoin Death Cross
Ethereum is now backed to reflect number one crypto Bitcoin’s death cross as its moving average lines up for cross-like convergence. Ethereum’s 50-day moving average and 200-day moving average are now in line for convergence as the price continues to dip. The death cross-like convergence’s success will be a replication of the crucial price action determinant for the number one crypto, the Bitcoin death cross.
The relevance of the death cross comes up in its utility as an indicator for price action predictions, it marks the point of inflection or deflection of crypto price action. Since price action breached the death cross mark to the negative region earlier this month, the price has dumped by over $12,000.
Previously, in August last year, Ethereum featured a similar moving averages convergence chart. However, shortly after the convergence, Ethereum featured a genius reversal move that flipped the chances of a negative moving crossover to run higher. This reversal resulted in a golden cross that fueled Ethereum’s price pump to an all-time high of $4,867 later in November. The golden cross is the direct opposite of the death cross, meaning that in the case of the golden cross, the 50-day moving average lines up above the 200-day moving average.
The moving average crossovers (death cross and golden cross) are not suitable to be utilized as standard independent indicators. This is because the indicator leverages outdated data for utility, hence its inadequacy.
Ethereum might be able to repeat its August 2021 turnaround to feature a golden moving crossover as its foundation remains immutable.