According to the latest on-chain data, a substantial share of Ethereum’s supply was accumulated between $2,300 and $2,500. While prices have recently moved upward, this means a large cohort of holders is sitting on slim profits. A modest pullback in price could quickly flip a substantial portion of these holdings into a net loss.
This delicate positioning creates vulnerability. If prices begin to fall, the risk of panic selling increases, which could accelerate downside pressure and potentially spark a broader correction in the ETH market.
Visualizing the Risk
The accompanying chart from Glassnode highlights Ethereum’s market cap breakdown by profit and loss zones.
It shows that the largest cluster of capital is tightly packed in the orange zone — representing those up only slightly on their positions. The sharp contrast in distribution reinforces the precarious balance currently seen in Ethereum’s valuation structure.
Market Implications
Glassnode’s warning comes as Ethereum continues to lag behind Bitcoin in terms of trend strength. While ETH has gained recently, its market posture remains less stable.
The data signals that Ethereum, despite positive momentum, is still walking a tightrope where minor volatility could lead to amplified downside reactions.
Until ETH builds a wider profit cushion — either through price appreciation or new capital inflows — the market is likely to stay sensitive and reactive to short-term movements.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/glassnode-majority-of-eth-supply-at-risk-of-flipping-to-loss/