The price of Ethereum currently stands at $3,640, reflecting some strategic profit-taking among investors. Despite this, institutional interest remains strong, absorbing market supply, and analysts predict that the bullish trend for ETH is not over yet.
Ethereum Experiences Strategic Profit-Taking
As Ethereum grapples with the elusive $4,000 mark in 2025, a recent peak at $3,856 signifies a key resistance level since the previous highs in December 2024. This delay in price momentum comes even as Bitcoin has set multiple new peaks.
Amid current selling pressures, analysts from Glassnode are cautioning that the cryptocurrency may face short-term turbulence. This assessment is grounded in their cost basis distribution heatmap for Ethereum, indicating that investors are cashing out their profits after a significant increase in value over recent weeks.
Notably, some whales within the market have responded to this price action. For instance, Lookonchain reported that a whale sold 8,000 ETH for over $30 million.
Price Forecast: Bullish Momentum Remains Unbroken
Despite these profit-taking activities, Glassnode provides an intriguing outlook. Their data suggests an emerging balance where new demand continues to absorb market supply, indicating that selling pressures have yet to outstrip buyer interest.
$ETH Cost Basis Distribution Heatmap shows profit-taking from buyers around $2,520 – visible in the fading red band from around July 1. But they still hold nearly 2M ETH. Takeaways: 1) strategic profit taking, 2) expecting more upside, 3) new demand is absorbing supply. pic.twitter.com/GPMONKKv2x
— glassnode (@glassnode) July 22, 2025
This resilient market structure suggests that any pullback might dissipate as bullish momentum gains traction. While some whales are liquidating their positions, others are accumulating. Institutional holders, such as SharpLink Gaming, have been aggressive in acquiring ETH over the past weeks.
The overall market sentiment appears to favor buyers, with Ethereum futures contracts witnessing record-high open interest, currently around $58 billion, according to Coinglass. This indicates that investor interest remains robust.
Ethereum’s price growth has also been fueled by an explosion in staking, significant inflows into ETFs, and favorable regulatory developments. Recent data reports that spot ETFs for Ethereum saw inflows of over 588,000 ETH last week, nearly 17 times the historical average.
Last week, #Ethereum spot ETFs saw inflows of over 588K $ETH – nearly 17x the historical average and more than double the previous record. pic.twitter.com/FipYT0HrQZ
— glassnode (@glassnode) July 22, 2025
As traders monitor potential corrections for buying opportunities, short-term consolidation may lead to a re-test of key supply zones. Conversely, sellers might be discouraged by decreasing balance volume and extended profit-taking. A strong support level remains around $3,500, with additional robust support potentially at $3,000.
Nonetheless, the RSI on the daily chart remains below overbought territory, and the MACD continues to signal a bullish trend. Thus, the $4,000 threshold remains a key target to watch.
