Ethereum investors face risk as $123 billion nears break-even
$123B in ETH at risk; whales still buying.
Ethereum, the second-largest cryptocurrency by market cap, is entering a critical phase. A marginal price decline could tip the balance for a significant portion of investors, placing nearly $123 billion in capital at risk.
According to blockchain analytics firm Glassnode, roughly 38% of Ethereum’s market cap—equivalent to $123 billion—is currently positioned just above investors’ break-even points.
Key takeaways
- 38% of Ethereum’s market cap, worth $123 billion, is near break-even levels.
- ETH inflows to exchanges are increasing, signaling possible sell pressure.
- Whales have added over $2.7 billion in ETH, suggesting long-term confidence.
- Ethereum must hold support above $2,496 to avoid panic-triggering losses.
Investor sentiment teeters on fear and hope
With Ethereum (ETH) trading around $2,655, this precarious zone represents a trigger point for potential mass sell-offs. The cryptocurrency has made multiple attempts to break above the $2,700 mark in May but failed, indicating strong resistance and heightened market fragility.
The recent surge in Ethereum transfers to exchanges is another red flag for the market. Typically, spikes in exchange inflows suggest that holders are preparing to sell—an early sign of panic in anticipation of further declines. Analysts interpret this as a warning of potential intensified sell pressure if ETH fails to find upward momentum.
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Yet, there is a counterpoint. Whales—wallets holding between 10,000 and 100,000 ETH—have accumulated over 1 million ETH, valued at approximately $2.7 billion, over the past several weeks. This large-scale buying signals that some high-net-worth investors remain confident in Ethereum’s long-term prospects.
Crucial price levels to watch
Despite the influx of whale investments, Ethereum continues to face heavy resistance between $2,635 and $2,712, where 1.67 million ETH were previously acquired. If the asset fails to break through this range, or drops below $2,496, it could trigger a cascade of losses as investors move to cut risk.
Going forward, Ethereum’s price behavior around these levels will be key. A sustained move above $2,700 could reignite bullish sentiment, while a break below support could test the market’s resolve.
Earlier we wrote that Vitalik Buterin warns of digital fragility, touts Ethereum as lifeline.
