Similar to the broader cryptocurrency market, Ethereum [ETH] has also been impacted by recent market instability. The altcoin’s endeavor to reach the $2,000 threshold was suddenly halted. Consequently, ETH has maintained a price range between $1,600 and $1,800. At present, ETH is trading at $1,640, reflecting a decline of 12.42% throughout August.
As a result of its recent sharp decline, the asset’s profitability has dwindled. Data sourced from Glassnode reveals that only 55.42% of the total ETH supply is presently in a profitable state. This marks the lowest point it has reached in the last seven months. Furthermore, optimistic traders invested in Ethereum faced a difficult scenario. According to Coinglass, there were more occurrences of forced closure for long positions compared to short positions. Over the past 12 hours, the Ethereum market has seen a combined liquidation value of $4.66 million. Among these, approximately $4.27 million in liquidations stemmed from long positions, while a modest $393.75K worth of short positions were likewise liquidated during this time frame.
Ethereum Staking Takes Center Stage
Despite these negative events, a considerable number of individuals maintained a positive outlook regarding the altcoin’s future. For instance, the volume of Ethereum held within the staking smart contract continued to achieve unprecedented heights. As outlined in a recent report, the Ethereum network had amassed more than 28 million ETH that had been staked, constituting approximately 23% of the overall Ethereum tokens in circulation. This remarkable surge in staking activity also signaled a high level of confidence from investors in the process.
Furthermore, according to the Bulls and Bears metric by IntoTheBlock, there were 110 addresses displaying bullish sentiment, as opposed to 93 bearish addresses. These bullish addresses represented entities that had acquired over 1% of the traded volume within the past 24 hours, while the bearish addresses belonged to those who had sold more than 1% of the traded volume during the same timeframe.
Presently, the market is characterized by a lack of decisive direction. The current landscape encompasses a blend of both hopeful and pessimistic viewpoints. In the midst of this situation, traders are eagerly awaiting a positive shift within the Ethereum market. Additionally, the potential approval of Ethereum exchange-traded funds (ETFs) could potentially contribute to elevating the asset’s price.