{"id":25305,"date":"2025-05-28T06:00:52","date_gmt":"2025-05-28T06:00:52","guid":{"rendered":"https:\/\/cryptd.in\/ethereum-may-be-one-dip-away-from-mass-losses-data-warns\/"},"modified":"2025-05-28T06:00:52","modified_gmt":"2025-05-28T06:00:52","slug":"ethereum-may-be-one-dip-away-from-mass-losses-data-warns","status":"publish","type":"post","link":"https:\/\/cryptd.in\/en\/ethereum-may-be-one-dip-away-from-mass-losses-data-warns\/","title":{"rendered":"Ethereum May Be One Dip Away From Mass Losses\u2014Data Warns"},"content":{"rendered":"<p>On-chain data shows a large portion of the Ethereum market cap was acquired near the current price, making ETH\u2019s position potentially fragile.<\/p>\n<h2>$123 Billion In Ethereum Market Cap Sits Close To Cost Basis<\/h2>\n<p>As explained by the on-chain analytics firm Glassnode in a new <a href=\"https:\/\/x.com\/glassnode\/status\/1927330586357592073\" target=\"_blank\" rel=\"noopener nofollow\">post<\/a> on X, the largest share of the Ethereum <a href=\"https:\/\/www.newsbtc.com\/analysis\/xrp\/xrp-price-at-eth-market-cap\/\" target=\"_blank\" rel=\"noopener \">market cap<\/a> is currently above the spot price by just 0 to 20%.<\/p>\n<p>The indicator of relevance here is the \u201cMarket Cap by Profit and Loss,\u201d which tells us about how much of the ETH market cap has its <a href=\"https:\/\/www.newsbtc.com\/news\/bitcoin\/is-the-bitcoin-bull-market-still-on-sth-cost-basis-suggests-so\/\" target=\"_blank\" rel=\"noopener \">cost basis<\/a> sitting within what distance of the cryptocurrency\u2019s price.<\/p>\n<p>Formally, the market cap is defined as the total circulating supply of the asset multiplied by the latest spot value. As such, the market cap of a particular group of tokens would be just their number multiplied by the price.<\/p>\n<p>The Market Cap by Profit and Loss refers to the last transaction price of these coins to determine whether the market cap held by them is in profit or loss right now. Naturally, the cost basis of the tokens being under the latest price suggests they are in profit, while the opposite case puts them in the loss category.<\/p>\n<p>Now, here is the chart for the indicator shared by the analytics firm that shows the trend in its value for Ethereum over the past few months:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/Gr9A14JWUAA5Jn3?format=jpg&amp;name=4096x4096\" alt=\"Ethereum Market Cap by Profit and Loss\" width=\"3200\" height=\"1800\" loading=\"lazy\" \/><\/p>\n<p>As displayed in the above graph, the largest share of the Ethereum market cap is currently contained within the 0 to 20% cohort. This group includes coins that currently have their value between 0 and 20% above their cost basis. Naturally, even the tokens on the higher end of the range wouldn\u2019t be in that big a profit at the moment.<\/p>\n<p>In total, about $123 billion of the ETH market cap, equivalent to almost 38%, falls under this category. Considering the delicate profit-loss balance that all this supply has, it\u2019s possible that even an ordinary pullback could send a large number of tokens underwater. \u201cDespite recent gains, ETH remains in a fragile position,\u201d notes Glassnode.<\/p>\n<p>In some other news, Ethereum has witnessed a buying push from the <a href=\"https:\/\/www.newsbtc.com\/bitcoin-news\/bitcoin-ath-met-with-mixed-whale-reactions-whats-the-market-signal\/\" target=\"_blank\" rel=\"noopener \">whales<\/a> during the past month, as analyst Ali Martinez has pointed out in an X <a href=\"https:\/\/x.com\/ali_charts\/status\/1927417847090663863\" target=\"_blank\" rel=\"noopener nofollow\">post<\/a>.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/Gr-QNuVWEAAsDzT?format=jpg&amp;name=4096x4096\" alt=\"Ethereum Whales\" width=\"4000\" height=\"2250\" loading=\"lazy\" \/><\/p>\n<p>\u201cWhales\u201d are defined as the investors carrying between 10,000 and 100,000 tokens of the cryptocurrency. From the chart, it\u2019s apparent that the total Ethereum supply held by this cohort has registered a notable increase in the last few weeks.<\/p>\n<p>More specifically, the whales have added around 1 million ETH (worth around $2.7 billion at the current exchange rate) to their holdings in this period.<\/p>\n<h2>ETH Price<\/h2>\n<p>Ethereum observed a decline below the $2,500 level earlier, but it seems the coin has found a rebound as it\u2019s back at $2,700.<\/p>\n<p><img decoding=\"async\" class=\"size-medium\" src=\"https:\/\/www.tradingview.com\/x\/9ciAk5h2\/\" alt=\"Ethereum Price Chart\" width=\"1486\" height=\"890\" loading=\"lazy\" \/><\/p>","protected":false},"excerpt":{"rendered":"<p>On-chain data shows a large portion of the Ethereum market cap was acquired near the current price, making ETH\u2019s position potentially fragile. $123 Billion In Ethereum Market Cap Sits Close To Cost Basis As explained by the on-chain analytics firm Glassnode in a new post on X, the largest share of the Ethereum market cap [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":25307,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feeds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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