Ethereum’s second quarter performance was not profitable, suggesting it was a difficult quarter.
As the price surged, whales and retail investors made some profits.
Ethereum [ETH]’s price and popularity have surged over the past few days following the announcement of an Ethereum ETF.
Disappointing quarter
Still, the ecosystem isn’t doing too well. Data from Token Terminal shows that Ethereum was not profitable in the second quarter.
If Ethereum continues to have problems generating revenue, it will become more difficult for the network to sell its holdings.
However, interest in ETH remains relatively high.
More than $3 billion worth of Ethereum was withdrawn from centralized cryptocurrency exchanges after the United States approved a spot Ethereum exchange-traded fund (ETF) on May 23, suggesting a potential supply crunch.
Data shows that between May 23 and June 2, the amount of Ethereum on exchanges decreased by about 797,000 Ethereum coins, worth $3.02 billion.
A reduction in exchange reserves means less ETH is available for sale as investors move their assets into self-custody to use for other purposes rather than selling them immediately.
Ethereum’s supply on exchanges is currently at its lowest level in years at just 10.6%. The reduction in supply, coupled with a surge in investor demand following the approval of numerous ETFs, could further boost ETH’s price and push it towards its all-time high (ATH).
Still, there are concerns that Grayscale’s Ethereum Trust (ETHE), which manages $11 billion, could affect Ethereum’s price action. This is exemplified by the Grayscale Bitcoin Trust (GBTC), which saw $6.5 billion in outflows in the first month after approval.
How is ETH performing?
At press time, ETH is trading at $3,833.59, with its price up 1.19% over the past 24 hours. Surprisingly, both whale and retail interest has slightly declined over the past few days.
AMBCrypto’s examination of Santiment data shows that the total amount of ETH held by groups holding 0.01 ETH to 10 ETH has decreased.
In addition, addresses holding larger amounts also gave up some of their ETH.
This behavior displayed by both whale and retail investors suggests that many holders are engaging in some degree of profit-taking as prices surge.
However, the sell-off was not severe enough to have a negative impact on prices.
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