Ethereum ($ETH ), the second-largest cryptocurrency by market cap, is currently in a high-stakes position. Despite attempts to regain momentum, the asset has struggled to break above $2,700 and is now facing a crucial test of support. If the price dips again, nearly $123 billion worth of investor capital could be exposed to losses.
⚠️ What’s at Stake?
At the time of writing, $ETH
is trading near $2,641. It has attempted to break through the $2,700 resistance zone three times this month — and failed each time. According to on-chain data from Glassnode, approximately 38% of Ethereum’s total value — roughly $123 billion — sits just slightly above investors’ cost basis.
This means that if the price drops even modestly, a significant portion of holders could find themselves underwater. History shows that this kind of scenario often leads to fear-based selling, further accelerating downward momentum.
> “The largest share of ETH market cap – $123B – sits just 0–20% above cost basis… even a modest price drop could flip a large chunk of supply into loss,” notes Glassnode.
🧠 Sentiment Turns Cautious
Adding to the concern, there has been a noticeable spike in ETH transfers to centralized exchanges — the first major increase this month. When tokens start moving to exchanges, it typically signals that investors are preparing to sell.
So, while the fundamentals of Ethereum remain strong long-term, current price action and behavior from holders suggest that caution is setting in across the market.
🐋 Whales Accumulate Amid the Chaos
Despite the unease, large investors — Ethereum whales holding between 10,000 and 100,000 ETH
