Ethereum Faces Fragile Market Conditions as Price Hovers Near Holder Break-Even Levels
Ethereum’s market is currently teetering on a knife’s edge, according to insights from blockchain analytics firm Glassnode. A significant share of ETH’s total value was acquired at prices close to its current trading range—an indicator that even modest price drops could trigger widespread unrealized losses.
Glassnode’s latest data shows that about 38% of Ethereum’s market capitalization—approximately $123 billion—is tied to coins purchased at prices ranging from the current spot rate to just 20% higher. These holdings are either barely in profit or at risk of tipping into loss territory with even minor downward movements.
“This leaves ETH in a vulnerable position despite recent price gains,” Glassnode noted in a recent post on X (formerly Twitter).
The findings are based on Glassnode’s “Market Cap by Profit and Loss” model, which tracks whether ETH holders are in profit by comparing the price they paid to the current market value. With so many investors near their breakeven point, Ethereum’s price structure remains fragile and susceptible to volatility.
Potential Trigger Point for Liquidation
In another update, CW noted that the key level to watch for liquidations is $2,472. If Ethereum’s price drops near that figure, large investors might push the price further down to activate forced liquidations. However, CW does not see that drop as likely at this time
Ethereum Outperforms Bitcoin in Q2 Despite Market Risks
Despite ongoing concerns over market stability, Ethereum has outshined Bitcoin in the second quarter of the year. Since the start of April, ETH has surged by 46%, signaling strong investor interest and momentum.
This upward move has pushed Ethereum above the $2,600 threshold—a level that, if maintained, could act as a solid support zone moving forward.
According to The Cryptonomist, reclaiming and holding above $2,600 may break Ethereum out of its current sideways trend, potentially setting the stage for a rally toward the $3,400 mark. Such a move would represent a notable shift in market behavior and sentiment.
Ethereum Is Possibly About to Break Out
According to Crypto Bullet, the cryptocurrency is currently attempting to break out and appears to be building a symmetrical triangular formation. The price may attempt to close the CME Gap between $2,900 and $3,350 if it successfully breaks through and retests the $2,700 mark. Numerous analysts have set their sights on closing this gap in the near future.
Market analyst Rekt Capital offered a different angle by examining Ethereum’s market dominance. ETH’s dominance recently hit all-time lows but has since rebounded to around 9%. Holding this level could be a sign of growing strength heading into June. The analyst noted a similar pattern in September 2019, when Ethereum staged a rally after finding support at comparable levels.
The data highlights a critical tension in Ethereum’s current price action. With a large portion of its market value hovering just above cost basis, even slight downward movements could trigger a broader wave of losses. Yet, there’s also growing potential for a rebound—especially if ETH can continue to defend or reclaim key support levels.
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