The sharp corrections in the price of Ethereum (ETH) left millions of addresses in loss. According to a report by Glassnode, the total number of addresses in the red reached 38.6 million.
Number of ETH addresses in loss on ATH
The current number is a historical maximum of losses on the network, as shown in the chart below. That’s almost 10% more addresses than the 35 million registered in 2021.
This estimation calculation is based on a seven-day moving average. The graph also shows that as the price of ETH dropped, the addresses with losses grew exponentially.
Number of ETH addresses with losses. Source: Glassnode.
The last few days have been particularly challenging for the ETH price. The cryptocurrency dropped to the $1,100 region on Wednesday. Sellers managed to hold on and avoid further declines, but ETH has accumulated a devaluation of almost 40% in seven days.
These seven days are precisely the period on which Glassnode’s calculation is based. The year 2022 also recorded the biggest jump in these losses in a short time. At the beginning of the year, only two million addresses were not making a profit.
ETH is also leading the market in liquidations. In the last 24 hours, more than $150 million worth of positions were liquidated. That is, the degree of leverage in the cryptocurrency was also high.
It is worth noting that the above number is likely to increase if the market turmoil continues. But at least this Thursday, ETH and other cryptocurrencies are rehearsing small recoveries. BTC (BTC) trades up 1.57% quoted above $21,000. ETH, on the other hand, recorded an appreciation of 1.89% and is worth US$ 1,106.
The market is still feeling the effects of rising interest rates in the United States. On Wednesday, the Federal Reserve (Fed) raised the rate by 75 basis points, ie 0.75. Now, the US interest rate is 1.5%-1.75% (in the US the rate is set in a band, not a fixed amount).
The rise came above what was expected by the market. And indeed, this is the first time the Fed has raised interest rates by 0.75% since 1994. However, Fed Chairman Jerome Powell has hinted that the Fed will not make any larger increases, and the rate will likely not go up as much. .
But if inflation continues to break records, the Fed may revise its stance and raise interest rates to higher levels. That’s why the market is still uncertain about how central bankers will conduct their policies.
That said, cryptocurrencies, including ETH, responded positively, posting increases of more than 10% shortly after Powell’s speech. But the impact of the high diminished throughout the day.