According to IntoTheBlock’s report, the number of unprofitable wallets on Ethereum has skyrocketed in the past few months.
In July, the share of such wallets stood at 27%, but reached 44.2% by late August–the highest this year.
This occurred as both Ether and Bitcoin suffered a 11.3% and 11% drop in price, respectively, on the Coinglass platform.
Subsequently, the flagship altcoin’s market cap dropped to $195.505 billion before bottoming out at $1,627 on the night of September 5.
Nevertheless, on-chain activity rose to an average of 411,000 wallets carrying out transactions per day. On-chain analysts suggest that $1,665 may now serve as a resistance zone, and Ether may need to settle as low as $1,580 if support at $1,600 fails.
While the Relative Strength Index (RSI) reveals that ETH is in an oversold position, the possibility of reactive buyers may appear at a price point of $1,620 and below.
