Ethereum (ETH) Approaches Crucial Resistance Amid Profit-Booking Surge

After fluctuating around the $2,600 mark, Ethereum is showing signs of a potential short-term pullback before an anticipated breakout, attributed to profit-taking and increased trading activity near the key $2.5K resistance level. Meanwhile, long-term holders continue to accumulate the altcoin with Ethereum's presence on centralized exchanges at its lowest in over a decade due to growing accumulation from institutional investors.

The trend towards holding Ethereum long-term rather than trading it is confirmed by on-chain data, showing that wallets with over 10,000 Ethereum have accumulated 450,000 coins since late April. Furthermore, Ethereum-linked investment products recorded inflows of $205 million in the past week, bringing the year-to-date total to $575 million.