Ethereum has experienced a sharp 15% decline over the past week, leading to significant investor losses. 

The drop has increased selling pressure as holders appear more inclined to secure profits rather than hold through the volatility. This trend could exacerbate Ethereum’s downward trajectory if it continues.  

Ethereum Losses Mount

The recent price drop has caused the ETH supply loss to surge by 7 million ETH within just a week, from 2.7 million ETH to 9.7 million ETH. This supply is currently valued at over $23 billion, highlighting the scale of the losses. Such a significant rise in unrealized losses marks the largest increase in over five months, intensifying concerns about heightened selling activity.  

As losses mount, investor behavior indicates a shift toward liquidating holdings rather than waiting for a rebound. This growing trend of selling has the potential to push prices lower, putting Ethereum at risk of entering a prolonged bearish phase if market conditions don’t improve.  

Ethereum’s macro momentum shows signs of potential weakness. Active addresses in profitability currently account for over 28% of participants on the network. Historically, when profitability exceeds 25%, the likelihood of profit-taking increases significantly, often leading to further price declines.  

This level of profitability addresses signals that more investors might sell to lock in gains, adding to the existing selling pressure. If this trend persists, Ethereum could struggle to maintain its current levels, leading to a steeper price decline.  

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Author: Aaryamann Shrivastava