Ethereum’s price faced a notable decline in recent days, falling more than 5% and heading towards $2,240. Amid this price correction, new on-chain data revealed that Ethereum’s network realized gains that jumped to the highest level in three weeks. Interestingly, a large portion of these sellers appear to be investors who accumulated ETH below $2,000 in February and March and are still making comfortable profits even after the recent decline.
This raises questions about whether the latest selling push is simply healthy profit taking during a broader recovery phase or whether it could signal the start of a larger distribution trend for the Ethereum price.
Ethereum holders continue to make gains as activity on the chain increases
Fresh on the chain data from Santiment shows that the Ethereum network’s realized profits recently rose to nearly $74.6 million, which is the highest level recorded in the past three weeks. Interestingly, this spike in profit-taking comes while ETH price is down nearly 5.5% over the past three days, indicating that many investors are still exiting their positions with profits despite the ongoing correction.
The main reason behind this trend appears to be the strong accumulation phase that occurred in February and March, when Ethereum was trading below $2,000. During that phase, several traders aggressively accumulated ETH despite broader market uncertainty and geopolitical fears. As a result, many wallets continue to make gains even after the recent pullback towards $2,200.
At the same time, Ethereum’s on-chain transaction activity has increased significantly. The latest 4-hour candles are showing price compression around the $2,240 zone, often reflecting increased buying and selling activity within the network. Higher transaction volume naturally leads to more realized profit and loss events, which increases the total profits realized by the network.
The data suggests that Ethereum may currently be going through a distribution phase, with previous buyers gradually taking profits in market weakness.
Ethereum price struggles as profit-taking weakens bullish momentum
The rising realized gains within the Ethereum network now appear to be directly reflected in the price chart. ETH price continues to face selling pressure near crucial resistance levels after failing to sustain the recent recovery rally. The 4-hour chart shows Ethereum trading within a descending parallel channel, indicating the recent increase in distribution activity.
The chart also suggests that ETH is struggling to reclaim mid-range trendline resistance around $2,320. Moreover, the 50/200-day MAs have undergone a bearish crossover in the short term, indicating the weakening of bullish momentum and growing dominance of sellers. If the bearish crossover is confirmed and Ethereum continues to trade below the moving average, the price could move towards the lower support zone near $2,160 again. A breakdown below this range could raise the possibility of a deeper correction towards the $2,000 psychological support level.
However, invalidating the bearish setup would require ETH to decisively reclaim the moving averages and break above the resistance range from $2,320 to $2,400. Until then, traders can continue to view rallies as a temporary rebound rather than confirmation of renewed bullish strength.
The bottom line
Ethereum’s price currently appears to be entering a cautious phase where profit taking is increasing faster than new buying momentum. While the broader trend has not yet turned fully bearish, the recent surge in distribution activity suggests traders are turning defensive after the latest recovery rally.
The next few sessions could be critical for ETH, as continued weakness could push more holders to lock in their gains, increasing short-term volatility. On the other hand, a strong recovery from current levels could indicate that the ongoing pullback is a temporary cooldown rather than the start of a larger trend reversal.
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