Ethereum price faced a notable pullback over the past few days, dropping more than 5% and slipping toward the $2,240 range. Amid this price correction, fresh on-chain data revealed that Ethereum’s network realized profits surged to a three-week high. Interestingly, a large portion of these sellers appear to be investors who accumulated ETH below $2,000 during February and March and are still sitting comfortably in profit even after the recent drop.
This raises questions about whether the latest selling pressure is simply healthy profit-taking during a broader recovery phase or if it could signal the beginning of a larger distribution trend for the Ethereum price.
Ethereum Holders Continue Booking Profits as On-Chain Activity Surges
Fresh on-chain data from Santiment shows that Ethereum network realized profits recently climbed to nearly $74.6 million, marking the highest level recorded in the past three weeks. Interestingly, this spike in profit-taking comes while the ETH price has declined nearly 5.5% over the last three days, signaling that many investors are still exiting positions at a profit despite the ongoing correction.
The primary reason behind this trend appears to be the strong accumulation phase witnessed during February and March, when Ethereum traded below $2,000. During that phase, several traders accumulated ETH aggressively despite broader market uncertainty and geopolitical fears. As a result, many wallets still remain in profit even after the recent pullback toward the $2,200 range.
At the same time, Ethereum’s on-chain transaction activity has increased notably. The latest 4-hour candles show price compression near the $2,240 zone, which often reflects elevated buying and selling activity across the network. Higher transaction volume naturally leads to more realized profit and loss events, pushing overall network realized profits higher.
The data suggests that Ethereum may currently be witnessing a distribution phase, where earlier buyers are gradually taking profits into market weakness.
Ethereum Price Struggles as Profit-Taking Weakens Bullish Momentum
The rising realized profits across the Ethereum network now appear to be reflecting directly on the price chart. The ETH price continues to face selling pressure near crucial resistance levels after it failed to sustain its recent recovery rally. The 4-hour chart shows Ethereum trading within a descending parallel channel, signaling the recent increase in distribution activity.
The chart also suggests that ETH is struggling to reclaim the mid-range trendline resistance near $2,320. Moreover, the 50/200-day MAs in the short term have undergone a bearish crossover, which signals the weakening of bullish momentum and growing seller dominance. If the bearish crossover is confirmed and Ethereum continues trading below the moving average ribbon, the price could revisit the lower support zone near $2,160. A breakdown below this range may increase the possibility of a deeper correction toward the psychological $2,000 support level.
However, invalidation of the bearish setup would require ETH to reclaim the moving averages decisively and break above the $2,320 to $2,400 resistance range. Until then, traders may continue viewing rallies as temporary relief bounces rather than confirmation of renewed bullish strength.
The Bottom Line
Ethereum price currently appears to be entering a cautious phase where profit-taking is increasing faster than fresh buying momentum. While the broader trend has not turned fully bearish yet, the recent rise in distribution activity suggests traders are becoming defensive after the latest recovery rally.
The next few sessions could be crucial for ETH, as sustained weakness may encourage more holders to lock profits, increasing short-term volatility. On the other hand, a strong rebound from current levels could signal that the ongoing pullback remains a temporary cooldown rather than the beginning of a larger trend reversal.
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