Ethereum Whales Sell $99.46M, Triggering 50% Market Decline

Ethereum is currently experiencing a pattern of aggressive loss realization similar to the 2022 bear market. The sell-side liquidity from Ethereum whales is heavily concentrated within the $1.4k–$1.6k execution zone. This sell-off has been catalyzed by a risk-off sentiment regime and broad deleveraging, leading large entities to initiate aggressive distribution cycles. Galaxy Digital, for instance, has recently offloaded 62,181 ETH worth $99.46 million, with an average on-chain transfer price of $1,599 over the last six trading sessions.

According to AMBCrypto, a demand-supply equilibrium within this zone is necessary for a high-conviction breakout or a transition into structural accumulation. Until this equilibrium forms, price action is likely to remain range-bound or distribution-biased. The last time Ethereum experienced such significant sell-side pressure was during the 2022 bear market, as evidenced by the Net Realized Profit/Loss (PnL) remaining consistently in the red. A comparable aggressive loss realization has unfolded this year, particularly since mid-February, when ETH was trading within the $2.7k–$3k range. This indicates substantial liquidation activity and capitulation among holders, as Ethereum lost more than 50% of its market valuation, amplifying realized losses across the network.

Unless the Net Realized Profit/Loss (PnL) metric shifts into positive territory, indicating that holders are transitioning from loss realization to profit-taking, true sell-side exhaustion is unlikely to materialize. Consequently, to catalyze a recovery, a pronounced supply-demand imbalance must emerge. In essence, bid-side absorption must outweigh the persistent sell pressure – restoring confidence among holders and reintroducing favorable conditions for realized profits to return.

At the current price of $1,583, approximately 300 million ETH tokens have realized losses, with the realized price at $1,982. This suggests that a substantial portion of the market remains underwater, as holders who acquired ETH above $1,982 are currently realizing paper losses. A bullish reversal would require price action to surpass the realized price, to prevent mass capitulation. Mathematically, this would necessitate a 20%+ price appreciation from current levels. However, the path to such a recovery is clouded by rising exchange reserves, with approximately 40 million ETH deposited onto exchanges since the 2nd of April. This influx of supply into exchanges suggests sell-side pressure, reinforcing the prevailing FUD in the market. Without demand-side absorption, a bullish reversal remains unlikely, leaving Ethereum susceptible to further distribution phases driven by continued realized losses.