The best way to do this is to keep a counter in your loop:
difference = CellRange((2,2),(120,2)).value
# there's no need to read in the current Status value
i = 0
for x in difference:
if x < -10:
Status = "Paused"
Cell((2 + i), 3).value = "Paused"
else:
Status = "Active"
Cell((2 + i), 3).value = "Active"
i += 1
A better way to do this in Python is to use the enumerate keyword, which tracks the counter automatically:
difference = CellRange((2,2),(120,2)).value
i = 0
for i, x in enumerate(difference):
if x < -10:
Status = "Paused"
Cell((2 + i), 3).value = "Paused"
else:
Status = "Active"
Cell((2 + i), 3).value = "Active"