ETH supply in profit hits 2024 low as recent buyers feel the pressure

The seven-day moving average of the percentage of ETH supply in profit, which measures how much of the circulating supply of ETH is currently valued higher than the price at which it was last bought or transferred, reached 85.66% this week.

This represents its lowest point since November 2023.

This figure was at 94% just three weeks ago but has experienced a notable decline, which may have been in part due to the market-wide selloff that occurred in this period, which saw ETH's price drop by over 30%.

The price of ETH at the time of writing is approximately 15% higher than it was at the beginning of the year, yet the percentage of ETH supply in profit is 3% lower.

This may be an indication that a large portion of the ETH supply acquired in 2024 was done so from the second quarter onwards, in which the price of ETH failed to breach through new highs beyond $4,000.

This further exemplifies the notion that the current price of ETH is below the cost basis of a large portion of its buyers this year.

However, it is worth noting that despite this figure being at its lowest point in 2024, it doesn't necessarily indicate that most ETH holders are net in the red for the year to date, either. Here's why:

• The price of ETH is currently 15% higher than it was at the start of the year, meaning holders who bought earlier in the year are likely still in profit.
• Moreover, holders who acquired ETH at much lower prices in 2023 are likely still comfortably in the green.
• However, this low point does suggest that recent buyers who entered near the 2024 highs may be underwater on their investments.