The significant price appreciation of Ether (ETH), up 43% over the past month to trade at $4,283, is driving increased profit realization among short-term holders. Analysis indicates these holders are currently realizing approximately $553 million in profits each day.
Despite the substantial gains pushing ETH towards the $4,828 all-time high – still requiring a 12.7% increase to be breached – this profit-taking suggests hesitancy among short-term investors regarding further upward momentum. Conversely, long-term holders, defined as those holding ETH for more than 155 days, exhibit profit-taking activity consistent with levels observed in December 2024.
Market caution is further amplified by significant liquidation risks; approaching the $4,700 price point could trigger the liquidation of leveraged positions totaling nearly $2.23 billion.
Adding to market dynamics, BitMEX co-founder Arthur Hayes has reportedly re-entered the Ethereum market shortly after selling $10.5 million worth of ETH at the $4,300 level. The contrasting behavior between short-term and long-term holders underscores underlying uncertainty about ETH’s near-term price trajectory even amidst the strong rally.