40% of Ethereum Supply Slips Into Loss as Whales Take Opposing Positions

Core Insights - Ethereum holders are facing challenging market conditions, with over 40% of Ethereum's supply currently held at a loss [1] - The price of Ethereum has declined for three consecutive months, with a notable 22.2% drop in November and continued volatility in December [2] - The percentage of Ethereum's circulating supply held at a profit has decreased from over 75% to 59%, indicating a growing number of underwater positions [3] Market Performance - Ethereum's price briefly reclaimed the $3,000 level but has since fallen back below this threshold, trading at $2,973.78 at the time of writing [2] - The recent price weakness has significantly impacted holder profitability, with a notable decline in the percentage of holders in profit [3] Whale Activity - Prominent Ethereum holders are repositioning their assets, with Erik Voorhees depositing 1,635 ETH (approximately $4.81 million) into THORChain to swap for Bitcoin Cash [4] - Arthur Hayes is transferring ETH to exchanges, indicating a strategy to rotate into high-quality DeFi tokens, anticipating better performance as fiat liquidity improves [5] - Winslow Strong transferred 1,900 ETH and 307 cbBTC to Coinbase, valued at approximately $32.62 million, which may signal potential selling activity [6]