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 surged 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 reached $74.58 million during a single surge on Thursday. The expansion of realized profits even amidst a price decline is attributed to investors who purchased Ethereum below $2,000 in February and March still being in profit.

Santiment analyzed that although the market was shaken by war concerns and uncertainty in the cryptocurrency market at the time, traders who accumulated Ethereum during that period continue to hold profits even after the recent decline. It explained that as these investors cashed out some of their holdings, anticipating further declines, the overall realized profit across the network increased rapidly.

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

The technical trend is also in a vulnerable state. Analyst Keith Alan diagnosed that Ethereum briefly broke through a macro trendline but faced resistance at the 21-week simple moving average before being pushed below the key technical area around $2,280. He believes that if Ethereum fails to recover the 21-week moving average, $2,196 and $2,060 could become major support areas, and if these areas break, it could open up to $1,892 and below.

Santiment advised investors to approach cautiously but did not conclude a full-blown bearish reversal. However, it pointed out that to consider a strong market bottom, a clear increase in realized losses must be observed. The Ethereum market is at a juncture where short-term profit-taking and testing of technical support lines are intertwined, making the conclusion of the distribution phase a key variable in 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.*