Ethereum News Today: Ethereum Short-Term Holders Cash In Gains Amid $4,300 Uncertainty

Ethereum traders are accelerating profit-taking as the price approaches the $4,300 level, with short-term holders realizing gains at a significantly higher pace compared to long-term investors. On-chain data from Glassnode reveals that traders holding Ethereum for less than 155 days are currently realizing about $553 million in gains per day, as measured by a seven-day simple moving average [1]. This activity suggests growing uncertainty among investors, with some anticipating a potential near-term pullback [2].

Despite the recent price rally, overall profit-taking remains 39% below the daily peak observed last month when Ethereum was trading near $3,500 [1]. Ethereum’s price has risen 43% over the past month, reaching $4,283 at the time of reporting, but it remains 12.7% below its November 2021 all-time high of $4,828 [1]. Futures market data indicates that approximately $2.23 billion in positions could face liquidation if Ethereum approaches $4,700 [1].

This hesitancy follows a history of failed breakout attempts earlier in the year. In March, Ethereum fell below $2,000, and subsequent rallies failed to sustain momentum, causing many traders to lock in profits quickly [1]. The pattern has led to speculation that the current $4,300 level may not hold as a long-term support or resistance point.

Analysts have offered mixed views on Ethereum’s near-term outlook. Ryan Lee, Chief Analyst at Bitget, argues that Ethereum’s breakout above $4,300 and recent gains in altcoins like XRP, Solana, and Dogecoin signal an early shift in capital away from Bitcoin [1]. According to Lee, Bitcoin’s dominance has fallen from 62% to below 58% in recent weeks. He noted that if altcoins continue outperforming Bitcoin, it may signal the start of a broader “altseason.” However, he also warns that Ethereum could face a pullback to $3,600 if its overbought RSI (currently at 68.8) triggers further profit-taking [1].

Conversely, Bitcoin advocate Samson Mow has suggested that Ethereum’s current rally may be unsustainable, as investors rotate capital back into Bitcoin once the price increases sufficiently [1]. Mow claims that many long-term Ethereum holders are using Bitcoin as a base to fund Ethereum purchases in pursuit of short-term gains tied to new narratives like Ethereum treasury companies [1]. Once prices peak, he predicts these investors will sell their Ethereum holdings and return the profits to Bitcoin.

Meanwhile, Santiment’s Brian Quinlivan highlighted that public announcements of large institutional Ethereum purchases can sometimes trigger fear of missing out (FOMO), which may paradoxically slow or reverse price gains in the short term [1]. The mixed signals from analysts and market participants reflect the uncertain sentiment surrounding Ethereum’s next move.

Source: [1] Ethereum Profit-Taking Rises as $4.3K Level Sparks Short-Term Doubts (https://cryptonews.com/news/ethereum-profit-taking-rises-as-4-3k-level-sparks-short-term-doubts/)