- Ethereum’s market faced a 36% decline, with profitability at a multi-month low.
- Retail traders were selling at a loss, but market stabilization could trigger a rebound.
Ethereum [ETH] has experienced a significant 36% decline since its recent high just seven weeks ago, resulting in a sharp drop in profitability.
The percentage of ETH tokens in profit has fallen to its lowest point in over four months, and the total number of coins in profit has reached a three-month low.
Despite the prevailing negative market sentiment and retail traders offloading their holdings, there remains potential for a surprising rebound as the market stabilizes.
Ethereum: Profitability at a low
Ethereum’s recent profitability drop, marked by the lowest percentage of tokens in profit in four months and the fewest coins in profit in three months, highlights the challenges currently faced by Ethereum holders.
These figures suggest that a significant portion of the market is holding Ethereum at a loss, reflecting widespread bearish sentiment.
For holders, this may signal a period of discomfort, which could lead to panic selling, particularly among retail investors eager to minimize losses in response to market fear.
The drop in profitability may also indicate that many are questioning Ethereum’s near-term prospects. This negative sentiment could fuel further declines unless market conditions improve, or investor confidence is restored.
Negative sentiment and retail dumping
The market sentiment toward Ethereum is largely negative, fueled by Fear, Uncertainty, and Doubt (FUD) surrounding its price decline.
Rumors, macroeconomic pressures, and increasing competition have intensified the bearish outlook. Retail traders, in particular, are feeling the impact, with many choosing to sell at a loss rather than risk further declines.
This mass selling creates significant downward pressure but also lays the groundwork for a potential market reversal.
Once the panic subsides and stability returns, these conditions may present opportunities for a rebound, particularly if larger institutional investors step in.
ETH’s rebound potential
As Ethereum’s profitability drops to its lowest levels in months, historical patterns suggest that such downturns often precede recovery phases.
At the time of writing, only 66.9% of ETH tokens were in profit, down from 97.5% just two months ago — showing waning confidence among holders.
Total coins in profit stand at a mere 99.8M, the lowest since the 4th of November 2023.
Source: Santiment
However, underperforming periods in Ethereum’s past have often paved the way for rebounds, driven by external catalysts like regulatory clarity, Ethereum 2.0 milestones, or improving macroeconomic conditions.
Such recoveries are typically marked by sharp reversals, as oversold conditions and improving sentiment trigger renewed investor interest.
Read Ethereum [ETH] Price Prediction 2025-2026
For Ethereum, shifts in profitability metrics may serve as key indicators of impending market stabilization.
Should the percentage of supply in profit rise, it could spark confidence among sidelined investors, paving the way for a broader price recovery.
