- ETH saw it The highest percentage of profit deals since October 2021.
- Data from the series indicated that a local peak had been reached.
It is currently trading at a pre-FTX level, which leads to the leading coin, Ethereum [ETH] It recorded its highest percentage of profit transactions since October 2021 on January 16, data from feelings open.
💸 Do # encrypt Markets see a summit? Traders act as they believe and take this opportunity to take profits while they get the chance. # Bitcoin Witnessing the highest tx profit since February 2021. For # EthereumIt is the highest since October 2021. https://t.co/GFrtZtFIYP pic.twitter.com/yqDc2uDPuR
Saniment (@santimentfeed) January 16, 2023
Is your wallet green? Check out our ETH profit calculator
As reported by the Chain Analyst tool, prior to the recent rally, the highest coefficient of profit for ETH in the past two years was 1.50 on Oct 28, 2021. During that time, ETH price fluctuated between $3,500 and $4,500 to an all-time record high.
Since then, the value of ETH has fallen by more than 60%, data from CoinMarketCap show up.
Is the “top” in?
Usually, when the ratio of the chain’s daily trading volume in profit is greater than in loss, it is often interpreted as a sign that a local high has been reached and that investors took profits before the possible start of a price reversal.
ETH exchange activity over the past three days underlined the profit-taking activities of altcoin holders. According to Santiment data, since January 13, the supply of ETH on exchanges has increased by 1%.
Conversely, over-the-counter supply decreased by 1% over the same period. for every CryptoQuantA surge in the supply of ETH on exchanges over the past four days has brought the total number of coins held on exchanges to 18.30 million ETH at press time.
When the supply of cryptocurrency on exchanges exceeds the number held over-the-counter, it indicates that many asset holders were willing to sell their holdings on the open market at the time of publication. This was usually a sign of weak demand, as equity holders chose to liquidate their positions rather than hold them.
Moreover, the waning demand for ETH over the past few days has shown a decrease in the alternative open interest. According to Coinglass, at $6.04 billion at the time of writing, open interest for ETH has fallen by 8% in the past week.
Has Ethereum peaked?
On January 14, ETH saw a sharp increase in social mentions, which was at its highest value in the last 90 days.
Read Ethereum’s [ETH] Price forecast 2023-24
High levels of social signals, especially during a price rally, can indicate that the hype surrounding a currency has peaked. This may be due to the large number of investors becoming more optimistic about the performance of the coin market and buying them based on fear of missing out (FOMO).
Most of the time, these peaks in social signals coincided with local price peaks and were often followed by a period of stable or declining prices.