- ETH witnessed its highest decline in over two months.
- Ethereum’s gains have fallen below 80%.
Ethereum [ETH] experienced a significant drop in price, leading to a corresponding drop in profit supply.
Ethereum has the highest decline in months
On January 2, Ethereum faced a notable drop of over 6%, reaching a value of around $2,210, based on a daily time chart. The chart analysis showed a positive start to the year, with some periodic declines through January 2.
However, the most recent dip marked the steepest decline in recent weeks.
Source: trading view
Moreover, this price drop caused the Relative Strength Index (RSI) to fall below the neutral line. At the time of writing, the RSI remained below the line despite a slight increase in price.
The price was around $2,230, up less than 1% at the time of writing. The short-term moving average (yellow line) also continued to act as support for the time being. Nevertheless, this support could shift if the price falls below the existing range.
Ethereum sees more outflows
Surprisingly, Ethereum witnessed increased outflows on January 3 even despite a falling price. Leading up to this date, there was a predominant trend of inflows, which meant greater inflows of ETH into the exchanges for potential sale.
However, this pattern changed on January 3, when more than 22,000 ETH left the exchanges. The net flow on the exchanges remains positive, albeit marginal, indicating higher sales volume.
It’s notable that at the time of writing, there were no clear indications of an impending sell-off.
Source: Cryptoquant
The ETH supply in profits is taking a minor beating
The impact of the price drop extended to Ethereum’s profit offering. AMBCrypto’s analysis of the profit offering on Santiment showed a significant reduction in the volume of ETH that was in a profitable position.
Before January 3, the profit supply was over 110 million ETH, which made up more than 84% of the total supply.
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However, by the end of the day on January 3, this figure had fallen to around 107 million, accounting for around 82% of the supply.
At the time of writing, the profit supply had fallen further to around 104 million, which represents around 79% of the total supply.