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.
ā ļø Whatās 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 ā and failed each time. According to on-chain data from Glassnode, approximately 38% of Ethereumās total value ā roughly $123 billion ā sits just slightly above investorsā 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.
> āThe largest share of ETH market cap ā $123B ā sits just 0ā20% above cost basisā¦ even a modest price drop could flip a large chunk of supply into loss,ā notes Glassnode.
š§ Sentiment Turns Cautious
Adding to the concern, there has been a noticeable spike in ETH transfers to centralized exchanges ā 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.
š Whales Accumulate Amid the Chaos
Despite the unease, large investors ā Ethereum whales holding between 10,000 and 100,000 ETH ā appear to be buying the dip. On-chain data shows that these wallets have added over 1 million ETH recently, totaling around $2.7 billion.
This accumulation could be a sign of confidence in Ethereumās long-term prospects, but whether itās enough to offset broader market jitters remains to be seen.
š Critical Levels to Watch
Right now, ETH is trading around $2,648. A strong support base exists around $2,496, which bulls will need to defend to prevent a larger breakdown.
One of the key obstacles remains the supply wall between $2,635 and $2,712, where over 1.67 million ETH was previously bought. Until ETH can confidently break above that range, any rallies may be short-lived.
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ā TL;DR:
ETH is facing heavy resistance near $2,700.
Around $123B in ETH is close to turning into unrealized losses.
On-chain activity shows investors are moving coins to exchanges ā a bearish sign.
Whales are still accumulating, hinting at long-term belief.
Support to hold: $2,496. Resistance to beat: $2,700.
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