On-chain data shows profits realized by investors on the Ethereum network hit a three-week high as the price of ETH fell.

Ethereum has recently seen an augment in profits/losses

According to data from an on-chain analytics company SaintlyThe Ethereum network’s realized profit/loss has seen a acute augment recently. This indicator tells us, as the name suggests, the amount of net profit or loss that ETH investors as a whole realize through their trades.

The metric works by looking at the transfer history of each token sold on the blockchain to determine the price at which it was previously transferred. If the value of the previous transaction was lower than the last sale price of any coin, then the sale of the token is considered to lead to some net profit. Similarly, the reverse arrangement indicates incurring losses.

The exact degree of profit or loss in each case is equal to the difference between the two prices. The realized network profit/loss sums up these profits and losses from all transactions taking place on the network and determines their net value.

Here is a chart shared by Santiment that shows the trend of the Ethereum indicator over the last month:

As shown in the chart above, the Ethereum network’s realized profit/loss during this window was mostly below zero, a potential signal that investors selling on the blockchain tend to suffer losses.

However, there have been a few spikes in profits, and one of them happened recently. The chart shows that with this augment, investors earned $74.58 million.

Interestingly, the distribution did not coincide with the local maximum from the beginning of the week. Instead, it came after the cryptocurrency had already fallen. This means that some investors who were focused on profits panicked because of the price decline and simply decided to exit with some profits.

These holders may be buyers from the market phase in February and March, when Ethereum was trading below $2,000. As the analytics firm explained:

Portfolios accumulated during these months are still profitable, even after the mid-May decline, and many people have decided to sell, feeling they still have a chance to enjoy the profit.

Since profit-taking occurred, Ethereum has witnessed a further decline, a potential sign that this distribution may have played a part. Time will tell whether the network’s realized profit/loss remains positive in the coming days or whether losses will be incurred next.

ETH price

At the time of writing, Ethereum is trading around $2,250, down 2.6% over the past seven days.