• Nearly 38% of Ethereum’s $323 billion market cap was bought close to current prices, risking quick losses if price dips.
• If Ethereum drops near $2,472, it could trigger forced liquidations and speed up a downward move.
• Ethereum has risen 46% since April, and a breakout above $2,700 could lead to $3,400.

Ethereum’s current price structure is sitting on a delicate edge, according to data from analytics firm Glassnode. A large portion of Ethereum’s market value was bought at prices very close to its current trading level, raising concerns about potential market instability if prices shift even slightly downward.

Glassnode’s recent analysis reveals that nearly 38% of Ethereum’s total market cap, around $123 billion, belongs to coins bought within 0 to 20% above the current spot price. These tokens are barely holding a profit and could easily fall into losses if the price dips. This puts the coin at risk, as even small pullbacks could turn large holdings into losses.

Despite recent gains, ETH remains in a fragile position,” Glassnode posted on X.

The analysis is based on the “Market Cap by Profit and Loss” metric, which compares the last transaction price of ETH tokens to their current value. If the price paid is lower than the present value, the coin is in profit; otherwise, it’s in a loss. Ethereum’s position suggests many holders are standing close to breakeven.

In another update, CW noted that the key level to watch for liquidations is $2,472. If Ethereum’s price drops near that figure, large investors might push the price further down to activate forced liquidations. However, CW does not see that drop as likely at this time.

Despite the risks, Ethereum has done better than Bitcoin during the second quarter of this year. Since April began, ETH has gained 46%, showing strong market interest. Price movements have taken Ethereum above the $2,600 mark, a level that could become a new support if it holds.

The Cryptonomist believes that reclaiming $2,600 could end the sideways movement and lift its price toward $3,400. That would mark a significant shift from the current rangebound behavior.

Crypto Bullet added that the cryptocurrency seems to be forming a symmetrical triangle pattern and is now trying to break out. If the price breaks through and retests the $2,700 level successfully, it could move to fill the CME Gap between $2,900 and $3,350. This gap has become a target for several analysts who expect it to fill soon.

Another perspective came from Rekt Capital, who focused on Ethereum’s dominance in the crypto market. ETH’s dominance recently touched new all-time lows but has since bounced back to the 9% level. Holding that ground could signal better strength in June. According to the analyst, this echoes the coin’s behavior back in September 2019, when it rallied after finding support at a similar spot.

The numbers show that Ethereum’s price is under pressure from both above and below. With so much of its market value sitting just above cost, even a mild fall could turn into a larger loss wave. At the same time, signs are pointing to a potential recovery, especially if key price levels are maintained or retaken.

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