Ethereum Falls, But Profit-Taking Explodes...Highest Selling Pressure in 3 Weeks

▲ Ethereum (ETH)

Ethereum (ETH) has fallen by approximately 5.5% over the past three days, but on-chain profit-taking has soared to a three-week high, indicating that short-term selling pressure remains strong.

According to CryptoPotato, on-chain analytics firm Santiment reported that the realized profit on the Ethereum network hit $74.58 million in a single surge on Thursday. The expansion of realized profits even as prices fell is interpreted as investors who bought Ethereum below $2,000 in February-March still being in profit.

Santiment analyzed that while the market was shaken by war concerns and cryptocurrency market uncertainty at the time, traders who accumulated Ethereum in that period are still maintaining profits even after this recent decline. The explanation is that as they cashed out some of their holdings, anticipating further downside potential, the overall realized profit on the network grew significantly in a short period.

A separate analysis by CryptoQuant contributor Rei Researcher also showed that Binance deposit addresses surged to approximately 9,000 ETH. This is the highest level in over a year, and the inflow metric indicates that selling pressure was concentrated around the $2,260 mark. Santiment further analyzed that the 4-hour candlestick price action also showed compression around $2,241, indicating increased distribution activity.

The technical trend is also in a vulnerable phase. Analyst Keith Alan diagnosed that Ethereum briefly broke above the macro trend line but was rejected at the 21-week simple moving average, then pushed below the key technical area around $2,280. He believes that if Ethereum fails to reclaim the 21-week moving average, $2,196 and $2,060 could become key support levels, and if these levels break, it could open up to $1,892 and lower.

Santiment advised investors to approach cautiously but did not definitively declare a full bearish reversal. However, it pointed out that to consider the possibility of a strong market bottom, a clear increase in realized losses must be observed. The Ethereum market, with short-term profit-taking coinciding with tests of technical support levels, has seen the end of the distribution phase emerge as a key variable determining future trends.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*