Ethereum’s price rally has been so strong this year that nearly 97% of all ETH addresses are now “in the green” meaning their holdings are worth more than what they paid. According to data shared by CoinDesk, this is one of the highest profitability ratios Ethereum has ever seen, matching levels from late 2021 before the last market peak (CoinDesk).
On paper, this sounds like a textbook bullish scenario. High profitability generally means that long-term holders have been rewarded for their patience, confidence in the asset has increased, and network sentiment is positive. But here’s the catch markets don’t operate on good vibes alone. They’re driven by buying and selling pressure, and when nearly everyone is sitting on gains, the temptation to cash out can be overwhelming.
Right now, on,chain analytics are showing that $ETH profit-taking is happening at an average pace of $553 million per day. That’s a huge number, even for a crypto market used to large swings. A big part of this comes from short-term traders and mid-term holders who see this rally as an opportunity to lock in gains, particularly those who bought ETH in mid-to-late 2023 when it was trading in the $1,800–$2,200 range.
The current dynamic mirrors previous market cycles:
2017–2018: ETH hit a then-record high, the majority of holders were profitable, and selling pressure contributed to a deep correction.
2021: The run to $4,800 saw similar levels of profitability, and within months, ETH retraced more than 50%.
That doesn’t mean history will repeat exactly, but the psychological pressure is undeniable. High profitability often turns into a self-fulfilling selling wave, where traders fear losing unrealized gains and exit positions before others do.
There’s also the institutional angle to consider. With large players like FG Nexus and BitMine Immersion making multi-billion-dollar purchases this month (CoinDesk), the market now has more whales capable of moving prices. While some of these purchases are meant for long-term treasury holdings, others are more opportunistic and institutions aren’t shy about taking profit when their positions spike.
For bullish traders, the counterargument is that new demand can offset profit-taking. Spot ETH ETFs are attracting consistent inflows, Layer 2 adoption is rising, and DeFi transaction volumes are surging thanks to cheaper fees. If fresh capital continues to enter the market at a fast enough pace, it could absorb much of the selling pressure from profit-takers.
The next few weeks will be crucial. If $ETH Ethereum holds above the $4,000 psychological level despite this massive profitability ratio, it will signal that buyers are still in control and willing to buy from sellers at higher prices. If it slips below that mark, we could see a faster correction as confidence wavers.
Takeaway for holders and traders:
For long-term investors, this is a reminder to stick to your plan and avoid emotional selling.
For active traders, watch for signs of increased sell pressure in on-chain data — especially spikes in exchange inflows from large addresses.
This profitability milestone is a testament to $ETH
Ethereum’s strength in 2025, but it’s also a flashing yellow light for anyone assuming the rally is invincible. Markets tend to correct when too many people are sitting comfortably , and right now, almost everyone is.