Definition ∞ ETH Realized Loss occurs when Ethereum (ETH) tokens are sold for a price lower than their acquisition cost. This metric quantifies the total value lost by market participants who transact ETH at a deficit relative to when those specific tokens last moved on-chain. It represents an actual capital outflow from the market for those particular coins. This figure provides insight into the degree of negative sentiment or forced selling pressure within the Ethereum ecosystem.
Context ∞ The reporting of ETH Realized Loss is a significant data point in cryptocurrency market analysis, especially during periods of price downturns. High realized losses indicate substantial selling by holders at a deficit, which can signal investor capitulation. A key discussion often surrounds whether large realized losses signify a market bottom or further downward pressure. Future market movements are frequently correlated with shifts in this metric, as reduced realized losses can precede price recoveries.
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