Etherâs recent price ascent has pushed a vast majority of addresses into profit, according to on-chain analytics. Analysis from Sentora indicates that 97% of all ether addresses are now âin-the-money,â meaning acquisition costs lie below the current market rate. Such high levels of profitability are uncommon in major crypto rallies and often coincide with increased sell-side activity.
Historical on-chain data shows that when address-level profitability surpasses 90%, price consolidation or corrective movements frequently follow. In previous cycles, profit realization at these levels has led to measurable retracements, as short-term holders and speculators capitalize on gains. The current rally, which saw ether trading rise from $3,500 to over $4,200 in recent weeks, has created ideal conditions for profit-taking.
On-chain metric analysis reveals that profit-taking activity, measured by realized profit flows on Ethereum network, has accelerated to a seven-day simple moving average of $553 million per day. This figure peaked at $771 million in July 2025 and has since moderated slightly, but remains elevated. Notably, short-term holdersâthose with coins held for under 30 daysânow account for a larger share of profit realization compared to long-term investors, marking a shift in selling dynamics.
Exchange inflows corroborate these findings: deposit volumes of ETH into major custodial platforms increased by 18% over the past three days, signaling preparation for potential sell orders. DeFi protocols that facilitate profit-taking, such as decentralized exchanges and liquid staking platforms, also show rising activity. Unwrapping metrics from staking derivatives highlight a modest uptick in ETH withdrawals, as holders rebalance portfolios.
Despite growing sell-side pressure, market structure factors continue to support etherâs price. Liquidity at key support zones around $4,000 remains robust, with large limit buy orders from institutional participants visible on order books. Additionally, ETF inflows into ETH spot products have persisted, bolstering demand. The balance between profit-taking and fresh capital entering the market will determine whether ether consolidates near current levels or resumes upward momentum.
In conclusion, elevated profitability among address holders suggests a heightened risk of corrective pressure, but underlying demand drivers such as ETF allocations and institutional interest provide counterbalance. Close monitoring of realized profit flows, exchange deposit trends, and order book liquidity will be critical to gauge the next phase of etherâs price action.
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