Ethereum ($ETH ), the worldâs second-biggest cryptocurrency, is walking a financial tightrope. Despite repeated attempts to push past the $2,700 resistance level, ETH has failed to break through â and itâs making investors nervous. Right now, the price is hovering around $2,648, but a dip from here could spell trouble for a large portion of holders.
â ď¸ Whatâs Going On?
According to Glassnode, around 38% of Ethereumâs total market value â roughly $123 billion â is just barely above investorsâ cost basis. That means if ETH slips even slightly, a huge chunk of investors could be holding ETH at a loss.
This kind of setup is risky. Historically, when a large number of investors are at risk of going underwater, panic selling tends to follow â dragging the price down even further.
âThe largest share of $ETH market cap â $123B â sits just 0â20% above cost basis⌠even a modest price drop could flip a large chunk of supply into loss.â â Glassnode
đ§ Caution Is Creeping In
More ETH is being moved to centralized exchanges â a key sign that investors may be preparing to sell. Itâs the first major spike in exchange transfers this month, and it usually means market sentiment is turning bearish.
So while Ethereumâs long-term fundamentals still look solid, short-term confidence is clearly being tested.
đ But Whales Are Buying
Interestingly, not everyone is running for the exits. Ethereum âwhalesâ â big investors holding 10,000 to 100,000 ETH â have actually added over 1 million ETH to their wallets recently, worth around $2.7 billion.
This could be a sign that the smart money still believes in Ethereumâs future, even if the short-term outlook feels shaky.
đ Key Price Levels to Watch
Support to Hold: $2,496 â If ETH drops below this level, things could get ugly fast.
Resistance to Break: $2,700 â This is the wall ETH needs to smash through for any real rally to gain momentum.
Thereâs a big chunk of ETH â over 1.67 million coins â that was bought between $2,635 and $2,712. Until ETH clears that range, any bounce might be short-lived.
â TL;DR:
ETH is stuck below $2,700 â and struggling.
Around $123 billion worth of $ETH is close to turning into losses.
More ETH is being sent to exchanges, signaling possible sell pressure.
Whales are buying the dip â maybe they know something we donât?
Watch $2,496 (support) and $2,700 (resistance) for clues on whatâs next.