As December draws to a close, Ethereum (ETH) holders are facing increasingly challenging market conditions. On-chain data shows that over 40% of Ethereum’s supply is currently in losses.
Notably, ETH holders are responding to mounting losses in very different ways, with some capitulating and others continuing to accumulate losses despite large unrealized drawdowns.
Ethereum holders’ positions go underwater as ETH falls
Ethereum has closed in the red for the past three consecutive months, with a massive 22.2% decline in November alone. Assets continue to face volatility in December.
Despite briefly regaining the $3,000 level, ETH was unable to break above that level and subsequently fell below an important threshold.
At the time of writing, Ethereum was trading at $2,973.78, up 1.10% in the past 24 hours, in line with the broader crypto market.
Ethereum (ETH) price performance. Source: BeInCrypto Markets
However, the recent price decline has had a significant impact on holders’ profitability. According to data from Glassnode, more than 75% of Ethereum’s circulating supply was held at a profit earlier this month. Its share has now fallen to 59%, reflecting an increase in underwater positions.
Profits from Ethereum supply. Source: Glassnode
Ethereum whales react differently as losses deepen
Against this backdrop, several prominent holders have begun to change their positions. Lookonchain reported that Erik Voorhees, founder of Venice AI, deposited 1,635 ETH worth approximately $4.81 million to THORChain to exchange for Bitcoin Cash (BCH).
The move follows a similar trade earlier this month in which Voorhees exchanged ETH for BCH from a wallet that had been inactive for nearly nine years, and signals a notable portfolio shift.
Meanwhile, Arthur Hayes has also transferred his ETH to an exchange. Commenting on this strategy, Hayes said, “We are rotating away from ETH to high-quality DeFi names,” citing expectations that some tokens could outperform Ethereum as the fiat liquidity situation improves.
In another on-chain move, Cluster Capital partner Winslow Strong transferred 1,900 ETH and 307 cbBTC to Coinbase, bringing the total transfer amount to approximately $32.62 million. Such transfers do not automatically confirm sales activity.
However, the move towards centralized exchanges is generally seen as a potential sell-side signal, especially during times of heightened market uncertainty.
“ETH was withdrawn a month ago at an average price of $3,402.25, while cbBTC was accumulated at an average price of $97,936.68 between August 2025 and December 2025. If sold, the total loss would reach approximately $3,907,000,” said an on-chain analyst.
Strong buying by large holders
Not all whales are exiting the market. Whale address 0x46DB remained an aggressive buy throughout December. This investor has accumulated 41,767 ETH since December 3rd at an average price of $3,130.
The current position represents an unrealized loss of over $8.3 million. Bitmine, which has about $3.5 billion in unrealized losses, also made a notable acquisition this week.
This divergence highlights a clear divide in the market outlook. Although BitMine believes ETH could potentially rise over the coming months, the ongoing selling activity suggests that other large players remain unsure about ETH’s prospects.
BeInCrypto’s analysis also identified four key warning signals that indicate Ethereum could face further downward pressure. This includes increased foreign exchange reserves, higher estimated leverage ratios, and continued ETF outflows. At the same time, the Coinbase Premium Index fell to -0.08, its lowest level in a month.
This combination of losses, high leverage, and capital outflows presents a difficult outlook for Ethereum as 2025 draws to a close. Contrarian buying by large holders reveals bullish sentiment, but selling pressure has so far overwhelmed these individual efforts. Whether sentiment ultimately changes in 2026 remains to be seen.
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