The post Ethereum’s 2022-style bear market test: Can ETH find balance amid sell-offs? appeared on BitcoinEthereumNews.com.

Ethereum is undergoing a similar pattern of aggressive loss realization as seen in the 2022 bear market. A potential inflection hinges on the emergence of a strong demand-side absorption zone. The current sell-side liquidity from Ethereum [ETH] whales remains heavily concentrated within the $1.4k–$1.6k execution zone. In the wake of ETH’s drop to a multi-year low, catalyzed by a risk-off sentiment regime and broad deleveraging, large entities have initiated aggressive distribution cycles.  A prime example is Galaxy Digital, which has recently engaged in sizable on-chain distribution. Over the last six trading sessions, Galaxy offloaded 62,181 ETH worth $99.46 million, with an average on-chain transfer price of $1,599. According to AMBCrypto, a demand-supply equilibrium within this zone is a necessary precondition 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. Waiting on market exhaustion to catalyze a recovery 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. Hence, indicating substantial liquidation activity and capitulation among holders, as Ethereum lost more than 50% of its market valuation, amplifying realized losses across the network. Source: Glassnode Unless the metric shifts into positive territory (green), 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. Price threshold that could signal Ethereum’s resurgence According to the Net Realized Profit/Loss (PnL)…

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Filed under: News - @ April 18, 2025 9:22 pm