40% of Ethereum's supply is in a loss-making state as whales disagree on strategies.

As December draws to a close, Ethereum (ETH) holders are facing a particularly difficult period, with over 40% of the circulating supply currently in a loss-making state. On-chain data shows that prolonged downward pressure has significantly eroded investor sentiment, pushing the market into a state of clear divergence.

Ethereum has just experienced three consecutive months of weakness, with November recording a sharp decline of 22.2%. Despite attempts to reclaim the $3,000 mark, ETH quickly lost momentum and reversed course. At the time of writing, ETH is trading around $2,974, showing a slight increase in line with the market's overall recovery. However, the percentage of profitable supply has plummeted from over 75% at the beginning of the month to around 59%, reflecting a growing number of holders "in the water."

Whales' reactions have also been mixed. Some large holders, including Erik Voorhees and Arthur Hayes, have moved ETH to exchanges or swapped it for other assets, raising concerns about potential selling pressure. Conversely, large addresses and institutions continue to accumulate ETH despite growing unrealized losses, suggesting that long-term confidence remains.

Nevertheless, signals such as the increasing amount of ETH on exchanges, high leverage levels, and weakening ETF inflows indicate that the Ethereum market still faces many challenges as it heads into 2026.

ETH
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2,135.6
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