Ethereum’s large holders are shifting position as unrealized profit for wallets containing over 100,000 ETH turns positive again.
Earlier, these wallets stayed underwater during declines near $200 and later around $1,000, where the price formed clear cycle lows.
As losses narrowed, accumulation gradually increased. Then, as the ratio crossed above zero, the price began stabilizing and pushing higher. Now, with Ethereum [ETH] trading near $2,000, whales have re-entered profit territory.
This shift often marks a transition point rather than a clear direction.
On one hand, profitable positions support momentum as confidence improves. On the other hand, rising profits can trigger distribution, especially near resistance.
As this balance develops, price action becomes more dependent on demand strength. This implies a potential trend shift forming while also leaving room for volatility if selling pressure emerges.
On-chain accumulation builds as Ethereum faces heavy overhead supply
Ethereum’s structure now reflects a balance between renewed accumulation and heavy overhead supply.
The aggregate Realized Price sat close to $2,353, at press time which serves as a key cost basis. As the price approaches this $2,350–$2,400 zone, market direction becomes more sensitive.
Meanwhile, 100,000+ ETH wallets have flipped back into profit, signaling improved conviction among large holders. Earlier, these cohorts remained defensive while underwater. Now, their positioning supports potential upside.
However, Exchange Outflows exceeded 377,663 ETH, showing capital shifting to long-term holding. This balance implies accumulation is building, while resistance still defines the pace of any recovery.
Expanding supply caps Ethereum’s on-chain momentum
Ethereum’s supply dynamics show expansion rather than tightening, which reshapes the typical accumulation narrative. Circulating supply stands at 121.55 million ETH, with 38.26 million staked, yet issuance still exceeds structural offsets.
Annually, 1 million ETH is issued while only 16,000 ETH is burned, resulting in 0.82% growth.
Over the past week, supply increased by 18,996 ETH, as new tokens outpaced removal mechanisms. This matters because rising liquid supply reduces scarcity, which weakens price pressure during recovery attempts.
Meanwhile, daily active addresses fluctuate between 613,000 and 1.07 million, recently near 842,000, showing unstable participation.
As retail demand lacks consistency and whale flows remain muted, no dominant force drives direction. This balance implies Ethereum lacks strong momentum, leaving the price dependent on sustained demand to absorb the expanding supply.
Final Summary
- Ethereum [ETH] whale profitability turning positive signals a transition phase, where accumulation supports upside while rising profits increase the risk of distribution near resistance.
- Ethereum faces expanding supply and uneven demand, which limits momentum and makes price recovery dependent on sustained capital inflows.
Muriuki Lazaro
JournalistMuriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin.
