Ethereum underwater supply reaches levels seen after FTX collapse

**ETH Supply in Loss Near Post-FTX Levels**

Ethereum’s latest price drop has pushed a large share of ETH back into unrealized losses. Glassnode data shows loss-held supply now matches levels seen during the November 2022 post‑FTX capitulation.

Traders are watching Glassnode’s *supply in loss* chart — coins held below their on-chain cost basis. High readings often follow steep resets, signaling market pain.

Back in late 2022, forced selling and exchange fear flushed out weak holders, forming a major bottom. The current setup is similar, but market structure and liquidity are different.

Large underwater supply can mean two things:

• Continued selling from weaker hands
• Selling exhaustion after speculative leverage is cleared

Price action remains key. If ETH reclaims lost supports while loss supply stays high, it could indicate accumulation. If it keeps falling, the metric confirms ongoing stress.

For now, traders treat it as a sentiment gauge — not a buy signal.

Source: Glassnode