Ethereum Lost Its Footing

Ethereum lost its footing following other large traders seeing their unrealized gains return to depths last witnessed during the bear market period.

CryptoQuant analysts highlighted that the ETH/BTC pair is encountering difficulties in sustaining an increase, presenting an obstacle for the Stellar (XLM) token to advance further.

In another development, a recent analysis by CryptoQuant analysts has unveiled that the unrealized profit ratio for major ETH holders has slid back into the territory last seen during the bear market.

Despite the market touching nearly twice the average value it attained during the previous bear market, most major holders have returned to their starting point. This finding bodes ill for even higher volatility in the market and an increment in risk in the economy and/or uncertainty in the market.

Ethereum Faces Price Pressure

As shared by CryptoQuant analysts in a X post, the ratio between Ethereum and Bitcoin has remained low, placing pressure on the ETH price.

Fluctuations in price have been exacerbated by fear, uncertainty and doubt (FUD) that has characterized the market in the recent past. Mid-tier investors, those with between 1,000 and 10,000 ETH, have fallen into an unrealized loss position, so a large number of them are now in the red. This implicates a relatively lower level of confidence among the investors in whale.

“ETH whales' unrealized profit ratio: bear market levelIt means that most of their position are back at the same level of profit as it was during the bear market despite a price twice higher today.”

Ethereum has recently displayed some trading rally as it strives to gain some ground that it lost in the past. The cryptocurrency has been trading around the resistance level of $2,228 – a very important level that may define further movement. This level might lead to a bullish run if it breaks out in the positive territory with substantial buying pressure. A consolidation with prices moving above this level may bring congestion to $2,325, which would serve as a source of hope for traders.