ETH drawdown leaves five-year buyers underwater

TLDR

Ethereum (ETH) has dropped far enough that many long?term buyers from the past five years are sitting on unrealized losses.

1. ETH is about 68% below its 2025 all?time high, with analysts arguing most buys since early 2021 are now underwater.
2. Old wallets, whales and ETFs are selling into this drawdown, while a few large treasuries accumulate, creating a tense redistribution of supply.
3. The $1,500 support zone, ETF flow trends and the ETH/BTC ratio are the key signals for whether this pain marks a long?term bottom or prolonged underperformance.

Deep Dive

1. How Deep The ETH Drawdown Is

Ethereum (ETH) trades around $1,575, versus an all?time high near $4,950 in August 2025, a drawdown of roughly 68% from the peak price, according to recent analysis. That move has left ETH more depressed than Bitcoin, which is down about 52% from its own high, and ETH remains below major moving averages with an RSI near oversold levels. One detailed review notes eight of the last ten monthly candles have been red and that price is hovering in a $1,500$1,600 support band, framing this as a weak long?term trend.

Trader Jesse Olson went as far as to say that if you bought ETH any time in the past 5+ years and did not sell, your position is underwater, reflecting how little net progress spot holders see at current levels. That is likely an overstatement for those who bought near the 20192020 lows, but it captures the reality that most purchases made during or after the 2021 bull phase are now in loss territory.

2. Who Is Selling And Who Is Accumulating

On?chain data shows older wallets and whales actively reshaping the holder base. Four long?dormant wallets, which received over 37,000 ETH about eight years ago, recently sold 33,623 ETH around $1,560, realizing large but reduced gains and adding supply near the $1,500 area. Coverage of these moves highlights them as a test of buyer conviction.

At the same time, U.S. spot ETH ETFs have shed more than $10 billion in assets and over 953,000 ETH since January 2026, pulling institutional demand away as price slid from about $3,120 to the mid?$1,600s. A recent ETF review notes that funds now hold roughly 4.3% of circulating supply amid persistent outflows.

Against this, corporate treasuries like BitMine and SharpLink have been accumulating tens of thousands of ETH at current levels, even though their blended entry prices are far higher, leaving them heavily underwater on paper. One treasury snapshot shows SharpLinks latest 10,000 ETH tranche already in loss within days.

3. Signals To Watch For A Turning Point

Three practical gauges matter now:

1. Price relative to $1,500. Traders repeatedly flag this band as long?term support; sustained closes below it would signal that the current regime of weakness is extending.
2. ETF flows. Stabilization or net inflows into spot ETH products would indicate institutions are willing to re?engage, easing one major source of sell pressure.
3. The ETH/BTC ratio. Analysis of the current regime argues ETH is likely to underperform Bitcoin unless capital actively rotates back; a durable turn higher in this ratio would be an early sign of reversal.

Conclusion

Ethereums drawdown is severe enough that many five?year buyers and even large treasuries are in the red, shaping a market defined by pain rather than euphoria. Whether this becomes a durable bottom or just another stop on a weaker path depends on how the $1,500 zone, ETF flows and relative performance versus Bitcoin resolve in the coming months.