Ethereum (ETH) Whales Are Experiencing Unrealized Profit Ratios Comparable to Previous Bear Market Levels

This raised concerns about market conditions around Ethereum price. Despite Ethereum's price being nearly twice as high as during the last bear market, large holders

Large Ethereum (ETH) holders, also known as whales, are experiencing unrealized profit ratios comparable to previous bear market levels, raising concerns about market conditions around Ethereum price.

Despite Ethereum’s price being nearly twice as high as during the last bear market, which was in 2022, large holders between 1,000 and 10,000 ETH now show a negative unrealized profit ratio.

This signals that they are currently holding ETH at an average price that is higher than the current market price, indicating a potential unrealized loss for these large investors.

Furthermore, ETH/BTC continues to decline, and the market continues to be cautious due to fear, uncertainty, and doubt (FUD), which may be stifling any serious attempts by institutions to enter the market.

However, on-chain data indicates that Ethereum may be in an undervalued zone where one may have embraced opportunities for long-term investors to buy.

Ethereum Price MVRV Drops to Undervalued Levels

The Ethereum (ETH) Market Value to Realized Value (MVRV) ratio has dropped to below 1, an indicator used to gauge the relative valuation of an asset’s market price to the average purchase price of its holders, has declined to below 1.

This condition is known to be severe enough to spark rebounds in price from a historical perspective. But past market cycles suggest that ETH tends to soar after it hits this level.

The data from CryptoQuant shows that ETH investors’ realized price is now extremely concentrated around $2,200-$2,300 which may now constitute a strong support level.

It is very possible that buying pressure from institutional investors will keep the price rising even if ETH drops below this level.

Accumulation Increases as ETH Addresses Grow

On-chain data from CryptoQuant shows a surge in Ethereum (ETH) accumulation addresses—wallets that have received ETH but never withdrawn it—over the past two months.

This suggests that investors are taking advantage of the current market conditions to accumulate ETH at what they perceive as discounted prices.

If this accumulation trend continues, it could signal a shift in market sentiment, with institutional investors potentially preparing for a long-term price recovery.

The growing interest in Ethereum at this stage aligns with previous observations of crypto price trends.

Greater macroeconomic uncertainty could be shifting institutional investors’ preferences towards recognized assets with strong fundamentals, setting the stage for the next leg of the bull market.

Ethereum Price: Macroeconomic Factors and Market Uncertainty

The crypto market is currently facing several external pressures, including U.S. liquidity policies and global economic factors.

The Trump administration’s approach to tariffs and monetary tightening has introduced additional uncertainty, which could affect asset markets.

Despite these hurdles, Ethereum remains the second-largest cryptocurrency by market cap, and the foremost leader in decentralized finance (DeFi) adoption.

At current price levels, its strong fundamentals could attract more institutional buyers still.

Pectra Upgrade and Ethereum’s Future Outlook

The direction of the next price trend for Ethereum could be зависеть на from the development of the network. The recently launched Pectra upgrade is expected to bring major improvements. They may significantly contribute to improving Ethereum’s scalability and efficiency.

Ethereum developers can be seen working on making the enhancements in its network. Market participants are interested to see any signs of a possible price recovery.

Ethereum’s price was $2,217.58 with a 5.51% increase in the last 24 hours. However, there was a 10% loss over the past week.

With a market cap of $267.4 Billion, ETH remains a wholesale giant in the crypto space, and network upgrades will kick off a new bullish phase.