Ethereum [ETH] holders' profit levels are nearing historical highs, and the upward momentum remains strong in the short term. On-chain data shows that ETH still has room to rise, but may ultimately face a correction.
Short-term traders are cashing out faster than at any time last year, but the market has not shown signs of fatigue.
Currently, about 97% of Ethereum addresses are in profit, and nearly all holders have made gains, indicating that the market may be entering an adjustment phase.
Sentora data shows that holders are generally in profit. Meanwhile, Glassnode's MVRV extreme indicator remains far below the historically overheating red zone that represents cycle peaks.
The MVRV indicator is currently hovering around 2.0, not yet breaking through the historical high of 3.0 to 3.2. Similar levels were seen during market booms in 2017, 2021, and at the end of 2023.
This suggests that the market may be in the early to mid-stage of profit-taking, rather than at a peak stage.
As crypto analyst Ali Martinez points out, this pattern suggests that there is still greater room for price increases in the future, especially when the profits taken by short-term holders are absorbed by sustained demand.
Short-term holders are driving Ethereum's profit growth.
Glassnode data shows that the daily realized profits of ETH's 7-day moving average reached $771 million in July, surpassing the peak of December 2024, and then slightly decreased to $553 million.
The profits realized by long-term holders are also approaching the peak seen in December last year. Notably, the recent rapid growth in profits mainly comes from investors holding ETH for less than six months.
This indicates that traders who react quickly are more actively seizing price rise opportunities in the current cycle than ever before.
However, this level of activity has not yet led to the profit concentration phenomenon that typically occurs at market tops.
The alternating trend of long-term holders gradually cashing out and short-term investors frequently taking profits shows that this rise is mainly driven by active trading rather than market fatigue. As long as demand remains strong, there is still potential for price increases.
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