📉 #Ethereum Loss-Making Supply Ratio (Last 90 Days)
The chart shows that the percentage of Ethereum's supply at a loss fluctuates between 40-70%. This ratio indicates that a significant portion of investors are at a loss on their $ETH positions.
An increase in the supply at a loss may signal heightened emotional pressure in the market and potential panic selling.
When this ratio exceeds 60%, it typically enters a phase of "selling fatigue"; this could indicate a potential bottom region.
If the loss-making supply ratio continues to remain high, it may create impatience among investors and further selling pressure.
However, these levels also present accumulation opportunities for long-term investors, as historically, recoveries have been observed after these regions.
A decrease in the supply at a loss indicates that the ETH price is rising towards many investors' cost basis.
Since there has been a horizontal movement throughout the chart, it can be said that the market is indecisive and driven by speculative investors.
Current levels (for example, around 70%) have historically corresponded to horizontal consolidation or bottom formation processes for Ethereum.
Long-term investors can use this metric to identify periods when the supply is under pressure and before potential upward movements.
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