Over the past seven weeks, Ethereum [ETH] has encountered a notable 36% drop from its recent peak, leading to a sharp reduction in earnings.
The proportion of profitable ETH tokens has now descended to its lowest level in more than four months, with the total number of profitable coins hitting a three-month low.
Despite the prevailing pessimistic market mood and individual traders disposing of their assets, there exists a possibility for an unexpected recovery once the market steadies.
Ethereum: Profits Plummet
The recent decline in Ethereum’s profitability, characterized by the lowest percentage of profitable tokens in four months and the fewest number of coins making profits in three months, underscores the current challenges encountered by Ethereum investors.
These statistics indicate that a substantial segment of the market holds Ethereum at a loss, showcasing widespread bearish sentiment.
For investors, this situation might hint at a period of unease, potentially triggering widespread panic selling, especially among retail traders keen on limiting their losses amid market uncertainties.
The dwindling profitability may also suggest doubts about Ethereum’s short-term outlook. This bearish sentiment could lead to further declines unless market conditions improve, or investor trust is reinstated.