Ethereum is currently facing significant sell-side pressure, with large entities like Galaxy Digital offloading a large amount of ETH, causing the price to drop to multi-year lows. The market is in need of a demand-supply equilibrium to see a potential breakout or transition into accumulation. The Net Realized Profit/Loss (PnL) chart indicates that many holders are currently experiencing losses, with a price threshold of $1,982 needing to be surpassed for a bullish reversal. However, the market is clouded by rising exchange reserves, suggesting sell-side pressure. Without demand-side absorption, Ethereum may continue to face distribution phases driven by realized losses.
In order for Ethereum to see a recovery, a pronounced supply-demand imbalance needs to emerge, with bid-side absorption outweighing sell pressure. This will restore confidence among holders and create favorable conditions for profits to return. The current sell-side liquidity from Ethereum whales is concentrated in the $1.4k–$1.6k zone, and until a demand-supply equilibrium forms within this range, the price action is likely to stay range-bound or distribution-biased. The last time Ethereum experienced such significant sell-side pressure was during the 2022 bear market, indicating the need for market exhaustion to catalyze a recovery.
The Net Realized Profit/Loss (PnL) chart shows that at the current price of $1,583, approximately 300 million ETH tokens have realized losses, with a realized price of $1,982. This means that a large portion of the market remains underwater, with holders who acquired ETH above $1,982 currently experiencing losses. For a bullish reversal to occur, the price needs to surpass the realized price, requiring a 20%+ price appreciation from current levels. However, the path to recovery is hindered by the influx of supply into exchanges, suggesting sell-side pressure and reinforcing fear, uncertainty, and doubt (FUD) in the market. Without demand-side absorption, a bullish reversal for Ethereum may remain unlikely, leaving it vulnerable to further distribution phases due to realized losses.
In conclusion, Ethereum is facing significant sell-side pressure, with large entities like Galaxy Digital offloading a large amount of ETH, leading to multi-year lows. A demand-supply equilibrium within the $1.4k–$1.6k zone is needed for a potential breakout or transition into accumulation. The Net Realized Profit/Loss (PnL) chart indicates that many holders are currently experiencing losses, with a price threshold of $1,982 needing to be surpassed for a bullish reversal. However, rising exchange reserves suggest sell-side pressure and without demand-side absorption, Ethereum may continue to face distribution phases due to realized losses. The market needs a pronounced supply-demand imbalance to emerge, with bid-side absorption outweighing sell pressure to restore confidence among holders and reintroduce favorable conditions for profits to return.
