Ethereum Price Prediction: Investors Cash Out $1.5B in Profits After Recent Rally

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Ethereum (ETH) has seen a notable shift in market dynamics following a strong upward move that pushed prices toward $2,700. After a 30% gain over the past week, investor behavior has turned cautious, with a wave of profit-taking triggering a 2% decline on Thursday. The price now hovers around **$2,530**, as short-term volatility meets underlying accumulation trends.

Despite the pullback, long-term sentiment remains cautiously optimistic. A key factor softening the downside: over 640,000 ETH have flowed into accumulation addresses and staking protocols in the last 48 hours. This structural demand may be laying the groundwork for the next leg of growth—if key resistance levels are overcome.

👉 Discover how market cycles influence Ethereum’s next breakout

Ethereum Investors Realize $1.5 Billion in Gains

The recent rally to $2,700 triggered one of the largest profit-realization events in months. According to on-chain analytics from Santiment, Ethereum investors locked in nearly **$1.5 billion in net profits since the start of the week, with over $900 million realized in just 24 hours**—the highest since June 10, 2024.

This surge in selling activity is reflected in the spike of ETH’s Coin Days Destroyed (CDD) metric, which jumped to its highest level since October. CDD measures the number of coins moved multiplied by the number of days they were idle before being spent. A sharp increase suggests older holdings are being spent—often a sign of long-term holders cashing out after significant price appreciation.

Further confirmation comes from the Average Coin Age indicator, which has entered a clear downtrend. As average holding duration decreases, it signals increased distribution across the network—consistent with profit-taking after a rapid rally.

However, not all trades were profitable. Despite the bullish momentum, some investors still realized close to $300 million in losses, likely stemming from positions opened during earlier volatility or leveraged bets that didn’t pan out.

Interestingly, while large holders are taking profits, short-term traders are stepping in. Data from CryptoQuant shows rising net inflows into exchange wallets from retail participants—a sign of renewed buying interest at current levels.

This tug-of-war between exiting whales and entering momentum traders highlights a transitional phase in Ethereum’s price cycle: distribution after a rally, followed by potential reaccumulation.

Accumulation Trends Shield Ethereum From Deeper Correction

Even as profit-taking pressures mount, Ethereum’s downside has remained relatively contained. One major reason? Strong inflows into non-exchange, accumulation-focused addresses.

Over the past two days, more than 640,000 ETH have been transferred to addresses that have never sold—a strong signal of long-term conviction. These “deep storage” wallets often represent strategic accumulation by institutions or committed holders who believe in Ethereum’s fundamentals beyond short-term price swings.

Additionally, both whale holdings and staking deposits continue to climb, per CryptoQuant. This dual trend suggests that even as some investors exit, others with larger capital bases are positioning themselves for future upside.

👉 See how staking activity impacts Ethereum’s supply dynamics

Such structural support helps explain why the sell-off hasn’t accelerated. With a shrinking liquid supply—especially when combined with ongoing staking lockups—Ethereum becomes more resilient to downward pressure unless broad market conditions deteriorate.

Ethereum Price Forecast: Bull Flag Pattern in Play Amid Key Resistance Levels

Technical indicators suggest Ethereum is at an inflection point. On the 8-hour chart, price action shows a potential bull flag pattern, a continuation formation that typically precedes strong upward moves if resistance is broken.

However, two critical resistance zones stand in the way:

A decisive close above both levels would confirm the bull flag and open the path toward $3,000, a major psychological milestone.

Conversely, failure to hold current support at $2,500** could lead to further downside. Immediate support lies between **$2,250 and $2,100, a zone defined by prior consolidation and on-chain value metrics. A rebound from this range—combined with a breakout above resistance—would reinforce bullish momentum.

Should selling pressure intensify and push ETH below $2,100, the next major test would come at **$1,688**, a deep support level tied to long-term cost basis and miner-equivalent valuation models.

Technical Indicators Signal Cooling Momentum

While structural accumulation supports long-term optimism, short-term technicals reflect cooling momentum:

These signals indicate that while the broader uptrend isn't broken, immediate bullish momentum is fading. Traders should watch for stabilization near support before any new rally can gain traction.

Frequently Asked Questions (FAQ)

What caused Ethereum’s recent price drop?

Ethereum dropped from $2,700 to around $2,530 primarily due to profit-taking after a 30% weekly gain. Investors realized nearly $1.5 billion in profits, increasing sell-side pressure and triggering short-term downward momentum.

Why hasn’t Ethereum fallen further despite heavy selling?

Despite increased selling activity, over 640,000 ETH flowed into accumulation addresses in two days. Combined with rising staking deposits and whale accumulation, this demand has helped absorb sell pressure and limit downside risk.

What is a bull flag pattern in crypto trading?

A bull flag is a technical chart pattern where a sharp upward move (the "flagpole") is followed by a brief consolidation (the "flag"). If price breaks above the flag’s upper boundary, it often leads to another strong rally—making it a bullish continuation signal.

Can Ethereum reach $3,000 soon?

ETH can reach $3,000 if it breaks and holds above key resistance at $2,750 and $2,850. Confirmation of the bull flag pattern, combined with sustained buying pressure and positive market sentiment, would increase the likelihood of such a move.

How do on-chain metrics help predict ETH price movements?

On-chain metrics like Coin Days Destroyed, Average Coin Age, and exchange net flows reveal investor behavior—such as profit-taking or accumulation—that often precede price changes. They provide insight beyond price charts, helping identify shifts in market psychology.

Is now a good time to buy Ethereum?

For long-term investors, current levels near $2,530 may offer a strategic entry point—especially with strong accumulation trends and staking demand. However, short-term traders should wait for confirmation of bullish reversal patterns before entering new positions.

👉 Explore real-time on-chain data to time your next move

Core Keywords

With technical consolidation underway and on-chain fundamentals showing resilience, Ethereum stands at a pivotal moment. The coming days will determine whether this pullback evolves into deeper correction—or sets up the next major leg toward $3,000.