Losses in Ethereum$ETH are rising

The recent price drop in just one week has led to an increase in tokens at a loss by 7 million, from 2.7 million to 9.7 million ETH. This amount is now estimated at over $23 billion, underscoring the scale of the losses. Such a significant increase in unrealized losses is the largest in over five months. It heightens concerns about increased selling activity.

With rising losses, investors are showing a tendency to liquidate assets rather than wait for recovery. The growing trend towards selling could put pressure on the price. This puts Ethereum at risk of a prolonged bear phase if market conditions do not improve. Furthermore, active addresses in profit currently make up over 28% of network participants. Historically, when this figure exceeds 25%, the likelihood of profit-taking significantly increases. This often leads to further price declines.

Such a level of profitability among addresses indicates that more investors may sell to lock in profits, increasing selling pressure. In this scenario, the price will struggle to maintain current levels, which could lead to a sharper decline.$DOT $ICP