According to crypto analytics firm Glassnode as of June 10, more than 80% of the Ether supply was in profit — leading to fears of a price drop.
Glassnode posted a chart showing that the percent of Ether (ETH) in profit had hit 80% for the third time in a year, commenting: “Last time the Ethereum's supply in profit was significantly above 80%, ETH was priced at around $700.” (The key word there is “significantly” as Ether hasn’t been around $700 for some time).
The graph shows what percentage of the ETH supply is currently valued higher than at the time it was last moved. When the metric neared the 100% mark on two other occasions in the past year, it was followed by a steep correction.
The firm clarified the data only covered Externally Owned Accounts (EOAs) and not wallet contracts.
Investors sell at high prices
Cointelegraph reported in May an ETH price between $250–$252 could be the first substantial indicator for bullish momentum, but having 80% or more of the supply in profit has historically been unsustainable.
Though the price of ETH rallied to $250 on June 10 as the metric rose above 80%, the second-ranked cryptocurrency has been on a downward trend since that time, falling 8.4% to $229 on June 11.
However the recent Bitcoin (BTC) volatility no doubt played a major role in the price of ETH going down in the past day or so. Sell-offs triggered an $800 drop in BTC nearly the same time ETH experienced a similar percentage drop.