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10 hour ago
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Ethereum Price Falls Below $3,000; Profitability Drops Under 60%

Ethereum has experienced a decline, with its price falling below $3,000, impacting investor positioning. Key points:

  • On-chain data indicates a drop in Ethereum's supply profitability below 60%, reflecting recent price actions.
  • Institutional demand for Ethereum has decreased, evidenced by reduced retail profitability and institutional participation.

Supply Profitability Concerns

  • Ethereum briefly reclaimed the $3,000 level on December 22 but fell back shortly after.
  • The percentage of ETH supply in profit previously rose to 63% but has fallen under 60%, affecting both recent and earlier investors.

ETH Percent Supply In Profit

ETF Net Outflows

  • The 30-day moving average of US Spot Ethereum ETFs has shown negative net flows since early November.
  • Continued outflows replaced previous inflows that had driven Ethereum to new highs in August.
  • This trend contributes to Ethereum's struggle to maintain its price above $3,000 due to weakened ETF demand.

ETH: US Spot ETF Net Flows

Additional factors include on-chain data showing whales reducing Ethereum exposure. Notable moves:

  • A wallet linked to Erik Voorhees, incorrectly identified, reportedly exchanged 4,619 ETH for Bitcoin Cash.
  • Arthur Hayes, BitMEX co-founder, sold 1,871 ETH worth about $5.53 million recently.