Well, it looks like Ethereum’s recent climb has hit a bit of a wall. After a pretty strong recovery, ETH has been moving sideways for the past few days. Selling pressure is building up, and honestly, it’s making some traders nervous.
The hesitation seems to be coming from long-term holders—people who’ve held ETH for a while. They’re starting to take profits, which isn’t exactly a surprise. We’ve seen this before. Historically, when these bigger players start cashing out, it often leads to a reversal, or at least a pause in the uptrend.
Long-Term Holders Are Cashing Out
There’s a metric called Net Unrealized Profit and Loss, or NUPL. It tracks how much profit long-term holders are sitting on. And right now, it’s crossed above 0.65. That’s a level where, in the past, Ethereum’s price has struggled to keep climbing.
It makes sense, I think. When profits get this high, experienced investors tend to sell rather than wait around. That leads to more supply on the market, and unless there are enough buyers, the price just… stalls. Or drops.
We’re seeing that play out again. Buyers aren’t really stepping up to absorb all that selling, so ETH is kind of stuck. It’s vulnerable to more consolidation, or maybe even a dip.
Other Metrics Back This Up
Another indicator, Coin Days Destroyed (CDD), is also flashing. It measures when old coins are moved—often a sign of selling. In the last day, CDD saw its biggest spike in two months. That suggests long-term holders aren’t just thinking about selling; they’re doing it.
That kind of activity usually doesn’t bode well for short-term price action. It hints that these investors might not expect a big rally right away. Unless new money comes in from other groups, the momentum could cool off for a bit.
Where Does This Leave Ethereum’s Price?
As of now, ETH is sitting around $4,294. It’s holding above a support level near $4,222, but it hasn’t been able to break through $4,500. That level has become a pretty solid resistance.
So what’s next? Probably more sideways movement. With long-term holders taking profits, it’s hard for the price to push up significantly. I’d expect ETH to bounce between $4,222 and $4,500 until something changes.
That change could come if other investors see value here and start buying the ETH that’s being sold. If that happens, and if ETH can finally break and hold above $4,500, then we might see a retest of the $4,749 level. But for now, things look a little uncertain.
