Ethereum investment losses have reached critical levels for the first time since early 2023, according to a joint report from CME Group and blockchain analytics firm Glassnode. The study highlights a worrying trend: the average ETH holder is now sitting on a 10% unrealized loss.
This marks a reversal in the Ethereum market’s recent momentum and reflects broader weakness across both spot and derivative markets.
Ethereum Profitability in Steady Decline
The report charts the decline in Ethereum investment profitability since its 2017 peak. It shows that while downside volatility has eased, so have upside opportunities.
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In 2021, average peak profits were around 280%.
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In 2024, they shrank to 135%.
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As of May 2025, the average unrealized loss is 10%.
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During the bear market of 2022, that figure hit 20%.
Analysts argue that Ethereum is becoming a lower-risk, lower-reward asset, particularly for long-term holders and conservative investors. While this may appeal to institutions, it also limits the potential for explosive gains.
Ethereum Derivatives Market Shows Even Steeper Losses
The situation is worse in the Ethereum derivatives sector. As of May 29, investors in Ethereum-based ETFs in the U.S. are facing average unrealized losses of 21%.
This is largely due to the timing of the ETF launches, which began in July 2024 — when ETH was trading above $3,200. The current market price is approximately $2,634, compounding losses for retail and institutional investors alike.
“The ETFs came too late, and now investors are stuck with paper losses,” noted one analyst familiar with the market data.
Volatility Down, But So Are the Gains
Despite the losses, Glassnode analysts say there’s a silver lining: Ethereum’s volatility is decreasing. This could make ETH more attractive as a stable component in diversified portfolios — though less appealing to high-risk traders seeking massive returns.
If bearish market conditions continue, Ethereum investment losses could deepen further — especially if ETH fails to regain key price levels or if ETF flows stagnate.
