The recent price fluctuations of Ethereum (ETH) have raised eyebrows among investors, with the cryptocurrency currently trading at $3,640 after a notable dip. Despite some profit-taking actions, institutional interest remains strong, with analysts suggesting that the bullish trajectory for Ethereum is far from over.
Strategic Profit-Taking Affects Ethereum’s Price
Ethereum’s inability to surpass the $4,000 mark is becoming evident as the cryptocurrency retreated from recent highs of $3,856. This retreat follows a significant surge but highlights the increasing selling pressure at current levels, as noted by analysts from Glassnode.
The market sentiment is largely shaped by Ethereum’s cost basis distribution heatmap, which indicates that many buyers are cashing in their profits. This calculated profit-taking comes in light of recent substantial price increases for Ethereum. Prominent market players, including whales, have begun offloading portions of their holdings, with reports confirming that one whale sold 8,000 ETH for over $30 million.
Ethereum Price Forecast: Bullish Outlook Underscored
Despite the recent profit-taking activities, Glassnode points to a compelling narrative as new demand continues to absorb supply entering the market. Current data suggests that while some whales are selling, others are accumulating Ethereum, maintaining a balance within the market.
$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
The overall sentiment in the market appears to support buyers, as open interest for ETH futures has reached historic highs, currently sitting around $58 billion according to Coinglass. Furthermore, Ethereum is benefiting from a growing staking environment along with recent influxes of spot ETFs, with last week’s inflows amounting to over 588,000 ETH — 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
Traders are advised to watch for potential corrections, which could create buying opportunities, especially as short-term consolidation may lead to re-testing critical supply zones. On the contrary, selling pressure may increase due to the waning balance volume and continued profit-taking.
Key support levels for Ethereum appear to be situated around $3,500, with stronger support likely near $3,000. Notably, the RSI on the daily chart suggests that the asset is not significantly overextended, remaining just below overbought territory. Additionally, the MACD continues to paint a bullish scenario, making the $4,000 threshold an important level to watch.
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