Ethereum’s Underwater Supply Matches Post-FTX Capitulation Bottom
Ethereum’s latest drop has pushed a large share of ETH supply back into unrealized loss, with Glassnode data showing levels near the post-FTX capitulation period. Rising supply in loss signals that more holders are underwater, which can reflect severe market stress and possible exhaustion of weak sellers, but it is not a standalone bottom signal. The key takeaway is the scale of pain already embedded in the market. The post-FTX comparison is notable because that period marked a major sentiment reset and eventual base formation, though current market structure, liquidity, and institutional participation differ. Traders are watching price action for confirmation: ETH needs to stabilize, reclaim support, and show stronger spot demand before this on-chain reading becomes constructive. Until then, it functions mainly as a stress gauge rather than a buy signal.
