Ethereum profit-taking surges 43% as as ETH price rally stalls

Ethereum profit-taking has picked up pace as ETH approaches the $4,300 mark, with Glassnode data showing that traders holding ETH for less than 155 days are selling much faster than long-term investors. Short-term holders are realizing around $553 million in gains daily on a seven-day moving average — still 39% below last month’s peak, when ETH was trading near $3,500.

According to Glassnode, short term holders are realizing around $553 million in gains daily, based on a seven day simple moving average. Despite this jump, overall Ethereum profit taking is still 39% below the peak recorded last month when ETH traded near $3,500.

Long Term Holders Stay Calm

While short-term players are active, long-term holders are showing less urgency, selling at rates similar to December 2024. Ether has climbed 43% in the past month and was trading at $4,283 at press time, just 12.7% shy of its November 2021 all-time high of $4,828.

Futures market data from CoinGlass shows roughly $2.23 billion in positions could be liquidated if ETH nears $4,700, making Ethereum profit-taking a risk-management move for some traders.

Failed Breakouts Shape Market Sentiment

The increased Ethereum profit-taking comes after several failed breakout attempts earlier this year. In March, ETH fell below $2,000 after unsuccessful rallies, prompting traders to be more cautious.

Still, not everyone is waiting on the sidelines. BitMEX co-founder Arthur Hayes revealed he recently bought back into ETH just a week after selling $10.5 million at $3,507.

Altseason Signals vs. Pullback Risks

Bitget Chief Analyst Ryan Lee believes ETH’s breakout above $4,300 — alongside gains in XRP, Solana, and Dogecoin — could signal the start of an altseason. Bitcoin dominance has slipped from 62% to under 58%, and 75% of top altcoins have outperformed BTC over the past 90 days.

Lee forecasts ETH could test $5,000 if it holds above $4,200, though an overbought RSI of 68.8 could trigger further Ethereum profit-taking and a retracement toward $3,600.

Institutional Buys Can Spark Caution

Santiment’s Brian Quinlivan noted that large institutional purchase announcements sometimes spark FOMO but this can ironically lead to increased Ethereum profit-taking as traders rush to secure gains before a potential reversal.

Bitcoin advocate Samson Mow warned that ETH’s rally might be setting up a capital rotation back into Bitcoin, claiming some early ETH insiders are pushing new narratives before selling and shifting profits into BTC — a cycle that could amplify selling pressure and leave latecomers at risk.

Capital Rotation Back to Bitcoin?

Bitcoin advocate Samson Mow warns that Ethereum’s latest rally may simply be a setup for capital to flow back into BTC.He claims early ETH insiders are rotating into Ethereum to “pump” new narratives before selling and moving profits into Bitcoin a cycle that could intensify Ethereum profit-taking and leave new investors holding the bag.