Altcoins News

Story: Ethereum’s Market at Risk: $123B Worth of ETH Close to Breakeven, Raising Loss Concerns

By Pankaj K

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Recent on-chain analytics reveal that a significant portion of Ethereum’s market capitalization is precariously positioned near its cost basis, suggesting that the cryptocurrency…

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According to Glassnode, a leading on-chain analytics firm, nearly $123 billion — roughly 38% of Ethereum’s total market cap — is currently held within a price range only 0 to 20%…

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The key metric here is the “Market Cap by Profit and Loss” indicator. This metric measures how much of Ethereum’s circulating supply has been acquired at different price points…

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For instance, if a token’s last purchase price was below the current price, it is considered “in profit.

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By breaking down the entire circulating supply into cohorts based on their cost basis relative to the current price, this metric offers valuable insight into the overall market’s…

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Glassnode’s latest data shows that the largest portion of the Ethereum market cap sits in the 0-20% profit range.

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With about $123 billion worth of Ethereum tokens barely in the green, the market is in a delicate state.

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In trading and investing psychology, such a scenario can lead to increased selling pressure, as traders seek to limit losses or liquidate positions.

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Despite the fragile positioning of many holders, Ethereum has seen a notable influx of interest from whales—investors who hold between 10,000 and 100,000 ETH tokens.

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Data analyst Ali Martinez recently pointed out on X (formerly Twitter) that whale holdings have surged in recent weeks.

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Whale activity often signals confidence in longer-term fundamentals and can provide some price support during volatile periods.

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Ethereum’s market structure, as revealed by on-chain data, presents a mixed outlook. On one hand, the concentration of market cap near the cost basis means the market is…

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On the other hand, the increasing accumulation by whales could suggest underlying confidence in Ethereum’s future prospects, providing a counterbalance to retail investors’…

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Ethereum remains a major player in the blockchain and decentralized finance (DeFi) space, powering countless applications and smart contracts.

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Investors should be cautious in the near term, given Ethereum’s delicate profit-loss balance.

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