$23 Billion ETH Faces Losses As Ethereum Falls 15% In A Week

Ethereum has experienced a sharp 15% decline over the past week, leading to significant investor losses. 

The drop has increased selling pressure as holders appear more inclined to secure profits rather than hold through the volatility. This trend could exacerbate Ethereum’s downward trajectory if it continues.  

Ethereum Losses Mount

The recent price drop has caused the ETH supply loss to surge by 7 million ETH within just a week, from 2.7 million ETH to 9.7 million ETH. This supply is currently valued at over $23 billion, highlighting the scale of the losses. Such a significant rise in unrealized losses marks the largest increase in over five months, intensifying concerns about heightened selling activity.  

As losses mount, investor behavior indicates a shift toward liquidating holdings rather than waiting for a rebound. This growing trend of selling has the potential to push prices lower, putting Ethereum at risk of entering a prolonged bearish phase if market conditions don’t improve.  

Ethereum’s macro momentum shows signs of potential weakness. Active addresses in profitability currently account for over 28% of participants on the network. Historically, when profitability exceeds 25%, the likelihood of profit-taking increases significantly, often leading to further price declines.  

This level of profitability addresses signals that more investors might sell to lock in gains, adding to the existing selling pressure. If this trend persists, Ethereum could struggle to maintain its current levels, leading to a steeper price decline.  

ETH Price Prediction: A Rise is Far Away

Ethereum’s price has dropped to $3,377 following its 15% weekly decline. This marks the second time in a month that ETH has failed to establish $4,000 as a support level, reinforcing bearish sentiment. The inability to hold this critical level leaves Ethereum vulnerable to further corrections.  

If the current downtrend continues and selling pressure intensifies, ETH risks losing the $3,327 support level. A break below this point could drive the price below $3,000, signaling a significant bearish phase for the altcoin king.  

On the upside, Ethereum faces a barrier at $3,524. Flipping this resistance into support could trigger a rebound, pushing the price toward $3,721. Such a move would invalidate concerns of further losses, providing a much-needed boost to investor confidence and market sentiment.