Ethereum Struggles: 74% of ETH Supply in Loss—Can It Recover?

• With 74% of ETH supply in loss and strong resistance around $2,200–$2,580, Ethereum faces an uphill battle toward recovery.

• Limited support zones and continued realized losses highlight weak short-term confidence—ETH needs major buying volume to break out.

Following the Bloomberg strategist’s prediction of a potential $1,000 ETH scenario, as reported in a recent CNF update, new on-chain data reveals that approximately 74% of Ethereum’s circulating supply—about 106.75 million ETH—is currently held at a loss. This paints a challenging picture for Ethereum’s short-term price recovery.

According to The Currency Analytics, nearly 45% of ETH’s supply—roughly 66.29 million ETH—was acquired between $2,194 and $2,571, creating a massive resistance zone.

Analysts also suggest that Ethereum is likely to remain range-bound unless substantial buying volume emerges to push the price higher.

Ethereum is likely to remain range-bound, facing significant sell-side pressure and limited buyer conviction. A breakout is still possible, but it will require an influx of buying volume to overcome the current resistance.

These price levels are held by around 12.28 million wallets, further reinforcing sell-side pressure as ETH approaches these thresholds, making it difficult for the asset to gain upward momentum.

Fragile Support Structures

On the downside, Ethereum’s support base appears weak. Only about 2.83 million ETH—representing just 1.96% of the total supply—was bought in the $1,786 to $1,791 range.

This limited support zone suggests that, without renewed demand, ETH could be vulnerable to deeper declines.

Exchange Outflows and Market Sentiment

Adding to the complexity, over 700,000 ETH were withdrawn from exchanges during February and March 2025. This may reflect investors’ reluctance to sell at current prices, possibly signaling a holding pattern or anticipation of future gains.

Network Realized Profit/Loss metrics point to continued bearish sentiment. Ethereum saw significant realized losses of $922.48 million on February 3 and $788.36 million on March 7, indicating a wave of capitulation among short-term investors.

Path to Recovery: Overcoming Resistance

For Ethereum to stage a meaningful recovery, it must break through the resistance zone between $2,200 and $2,580. This would require a shift in sentiment and sustained buying pressure.

Until then, the ETH’s upside remains limited, with the price likely to continue consolidating, according to TradingView data.

In line with CNF’s recent report on Ethereum’s struggle, some analysts are encouraging smart money to consider lower-cap altcoins with explosive potential.

At the time of writing, Ethereum (ETH) is trading at $1,881.13, up 4.51% in the last 24 hours, but down 8.59% over the past week, according to Coin Market Cap data. See ETH price chart below.