Ethereum is currently experiencing a phase of aggressive loss realization, reminiscent of the 2022 bear market. The key to a potential turnaround lies in the emergence of a strong demand-side absorption zone.
At present, the sell-side liquidity from Ethereum whales is heavily concentrated within the $1.4k–$1.6k execution zone. This concentration has been fueled by a risk-off sentiment regime and broad deleveraging, prompting large entities like Galaxy Digital to engage in significant on-chain distribution activities. In fact, Galaxy Digital offloaded 62,181 ETH worth $99.46 million over the last six trading sessions, with an average on-chain transfer price of $1,599.
According to experts, a demand-supply equilibrium within this zone is crucial for a high-conviction breakout or a shift towards structural accumulation. Until this equilibrium is achieved, price action is expected to remain range-bound or distribution-biased.
The current scenario mirrors the aggressive loss realization witnessed during the 2022 bear market, with the Net Realized Profit/Loss (PnL) consistently in the red. This trend has continued this year, especially since mid-February when ETH was trading in the $2.7k–$3k range. The significant liquidation activity and capitulation among holders have led to Ethereum losing over 50% of its market valuation, amplifying realized losses across the network.
For a recovery to take place, a notable supply-demand imbalance must arise. This imbalance would entail bid-side absorption outweighing persistent sell pressure, restoring confidence among holders and creating favorable conditions for realized profits to return.
The current price of $1,583 indicates that approximately 300 million ETH tokens have realized losses, with the realized price at $1,982. This suggests that a considerable portion of the market is underwater, with holders who acquired ETH above $1,982 currently facing paper losses. To trigger a bullish reversal, price action would need to surpass the realized price, preventing mass capitulation. This would require a price appreciation of over 20% from current levels.
However, the path to recovery is clouded by the rising exchange reserves, with around 40 million ETH deposited onto exchanges since the 2nd of April. This influx of supply suggests sell-side pressure, reinforcing the existing FUD in the market. Without demand-side absorption, a bullish reversal is unlikely, leaving Ethereum vulnerable to further distribution phases driven by ongoing realized losses.
In conclusion, Ethereum’s resurgence hinges on the establishment of a demand-side absorption zone and a shift in the supply-demand dynamics. Until then, the market is likely to remain volatile and distribution-biased. The discovery of a new species of dinosaur has excited paleontologists and dinosaur enthusiasts alike. The newly identified species, named “Aquilops americanus,” is believed to be a distant cousin of the Triceratops and is the first horned dinosaur ever discovered in North America.
The fossilized remains of Aquilops americanus were found in Montana and date back to the late Cretaceous period, approximately 107 million years ago. The discovery was made by a team of paleontologists from the University of Utah, who were conducting fieldwork in the region.
The most striking feature of Aquilops americanus is its unique horned skull, which sets it apart from other known species of horned dinosaurs. The dinosaur’s name, Aquilops, is derived from the Latin words “aquila” meaning eagle and “ops” meaning face, in reference to the eagle-like beak of the dinosaur.
According to Dr. Scott Sampson, lead paleontologist on the project, Aquilops americanus is a significant discovery because it provides new insights into the evolution of horned dinosaurs in North America. The presence of a horned dinosaur in North America suggests that these creatures were more widespread than previously thought.
The discovery of Aquilops americanus also sheds light on the ecological diversity of the late Cretaceous period. The dinosaur is believed to have been a small herbivore, measuring only about two feet in length, which would have made it a potential prey for larger predators such as Tyrannosaurus rex.
The fossilized remains of Aquilops americanus are currently on display at the University of Utah’s Natural History Museum, where they are generating a great deal of interest from the public. Paleontologists are continuing to study the remains in order to learn more about this fascinating new species and its place in the dinosaur family tree.
Overall, the discovery of Aquilops americanus is a significant contribution to our understanding of the diversity of dinosaurs that once roamed the Earth. As paleontologists continue to unearth new fossils and make new discoveries, we can look forward to learning even more about the incredible creatures that lived millions of years ago.