As the cryptocurrency market faces increased volatility, Ethereum (ETH) holders are grappling with significant challenges. Recent data indicates that over 40% of Ethereum’s circulating supply is currently held at a loss due to prolonged price declines and mounting market pressures.
Ethereum’s Price Struggles Take Center Stage
Ethereum has now posted three consecutive months in the red, with November marking a sharp 22.2% price drop. December hasn’t reversed the trend, as ETH briefly crossed the $3,000 threshold but failed to sustain it, trading at $2,973.78 as of the latest report.
On-chain metrics signal how these price pressures are impacting holders. Earlier this year, more than 75% of Ethereum’s supply was held at a profit. This figure has dwindled to approximately 59%, highlighting a broad shift into loss territory for investors.
Whale Moves Highlight Market Division
Amid these losses, prominent Ethereum whales are adopting diverging strategies to navigate market uncertainty:
- Some are selling: Erik Voorhees, a well-regarded industry leader, recently converted 1,635 ETH (~$4.81 million) into Bitcoin Cash (BCH) through THORChain. Similarly, Arthur Hayes has shifted ETH into other DeFi assets, anticipating stronger performance from high-quality tokens as market conditions evolve.
- Others are buying: Certain whale addresses, such as 0x46DB, have taken a contrarian approach by accumulating over 41,767 ETH throughout December. Despite facing unrealized losses exceeding $8.3 million, these investors seem optimistic about Ethereum’s long-term prospects.
Market Risks Loom Ahead
Analysts have identified critical warning signs that Ethereum could face further downside pressures as the year concludes:
- Rising exchange reserves, indicating increased sell-side availability
- Elevated Estimated Leverage Ratios, which heighten liquidation risks
- Continued ETF outflows reflecting declining institutional confidence
- A drop in the Coinbase Premium Index, signaling fading buying interest
These indicators suggest that selling pressure could persist, despite significant contrarian buys by select whales.
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Conclusion
Ethereum’s market outlook remains uncertain as 2025 draws to a close, with prominent players taking opposing strategies. While some whales anticipate a rebound, others are rotating out of ETH in favor of alternative assets. Investors should remain vigilant and consider leveraging secure tools to weather potential market volatility. As we head into 2026, the market will likely provide further clarity on Ethereum’s trajectory.
