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Ethereum at risk! A slight decrease could result in a loss of $123 billion
Ethereum ($ETH), which is the second-largest cryptocurrency project by market cap, has now entered a critical phase. After failing to break the resistance level of $2,700 three times, this cryptocurrency is now standing at an important support zone. If the price decreases again, an investment of approximately $123 billion could be at risk.
â ď¸ What's at stake?
At the time of this report, Ethereum was trading at approximately $2,641. This month, it has attempted to breach the $2,700 level three times but has failed each time. According to on-chain data provider Glassnode, approximately 38% of Ethereum's total value â that is, around $123 billion â is currently trading just above the investors' costs by a margin of only 0-20%.
This means that if there is even a slight decrease in price, many investors could go into loss. Historically, such occasions create a climate of fear in the market, which can lead to further selling and push the price downward.
> According to Glassnode's report:
âThe largest share of Ethereum's market cap â $123B â is only 0â20% above the cost basis... even a slight decrease in price could turn a large amount of supply into losses.â
đ§ Market Mood: Cautious
Furthermore, a large amount of Ethereum has been moved to centralized exchanges for the first time this month â indicating the potential for selling.