$13 billion drained out of Ethereum in under a week

The dominant sentiment over the crypto market continues to be fear, and Ethereum (ETH) has been highly affected by it, with capitulation signals in the Ethereum Network amid a massive loss of net capital to the second-largest cryptocurrency by market cap.

According to data from Glassnode shared by Ali Martinez on X, Ethereum lost $13 billion in net capital “in the past few days”.

Market: Market realized value net capital change breakdown. Source: Glassnode (by @ali_charts)

“This chart shows the aggregate 30-day Net Position Change of the largest and most dominant assets in the digital asset industry.

Net capital inflows can occur either via uplifts in the Realized Cap for the major assets BTC, ETH or via growth in stablecoin supplies considering USDT, USDC and BUSD.

The realized cap is used for the major network assets as it is a more accurate depiction of true net capital inflow/outflow from the market.

Realized Cap values each coin at the last transacted price, and thus accounts for relative coin liquidity, and filters out purely speculative trading occurring off-chain.”

ETH Long/Short ratio chart. Source: Coinglass

In this context, general sentiment from different fear and greed indexes all point towards a bearish sentiment of fear to cryptocurrencies. However, an old mantra from trading analysts suggests that these are usually the best times to start building and holding positions for the long term.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.