Ethereum Investors Are In Big Trouble — One More Dip Could Put $123 Billion at Risk

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Ethereum, the world’s second-largest cryptocurrency, is standing on an edge, and even a small slip could trigger a chain reaction, putting around $123 billion of investors’ money at risk. 

As of now, ETH is trading near $2,641 and has already tried three times this month to break past $2,700, but each time it’s fallen back.

Ethereum In a Fragile State

A new report from Glassnode shows why this situation is so tricky. Nearly 38% of Ethereum’s total value, about $123 billion worth, is sitting just a little above what people paid for it.

Thus data suggests that a small price drop could easily push this group into losses, and when that happens, panic selling might follow.

Meanwhile, Glassnode calls ETH’s current position “fragile,” and for good reason. Investors who are barely in profit are usually the first to sell when fear kicks in.

On top of that, data shows that more ETH is being moved to exchanges. When people send coins to exchanges, it often means they’re getting ready to sell. It’s the first big spike of the month, and it’s making some investors even more nervous.

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Whales Are Buying, But Is It Enough?

Despite these challenges, there’s still a glimmer of hope. Ethereum whales holding between 10,000 and 100,000 ETH have been busy scooping up more coins lately.

In the last few weeks, they’ve added over 1 million ETH, worth around $2.7 billion. This suggests some investors are still confident in Ethereum’s long-term future.

ETH Facing Heavy Resistance

Even with whale support, Ethereum is struggling to push higher. The price has failed to break above $2,700 multiple times this month. One of the big reasons is the massive supply of ETH, about 1.67 million coins were bought between $2,635 and $2,712. 

For now, Ethereum’s price is hovering around $2,648. If the price manages to hold above $2,496, it might be able to build up enough strength for another push higher.