Profit-Taking Surges Among Short-Term ETH Holders as Price Nears $4,300

As Ether (ETH) consolidates around the $4,300 mark following a 43% rally over the past month, on-chain data signals that short-term holders are increasingly selling to lock in gains, potentially signaling short-term price pressure.

Key Market Dynamics

Daily Profit Realization Hits $553 Million
According to Glassnode, the seven-day moving average of Ether profit realization is approximately $553 million per day, largely driven by holders who've held ETH for less than 155 days. This suggests a wave of profit-taking by short-term traders. In contrast, long-term holders are offloading at levels similar to December 2024, showing greater restraint. 

Market Is Still Below Peak Profit-Taking
Despite the uptick, overall profit-taking remains about 39% below the daily peak seen last month, when ETH traded near $3,500. 

High Profit Levels Across Addresses
Per CoinDesk, 97% of ETH addresses are now in profit, meaning most holders are sitting on gains, which may increase selling pressure as investors look to realize their returns. 

Liquidation Risks Loom Near $4,700
CoinGlass data shows that if Ether climbs toward $4,700, around $2.23 billion in leveraged positions could be liquidated — introducing additional downside risks. 

Investor Sentiment: Short-Term Caution vs. Long-Term Confidence

An X post by Glassnode notes:

“Short‑term investors are realizing far more gains, driving the current wave.”

Meanwhile, long-term holders appear bullish. Glassnode’s Net Unrealized Profit/Loss (NUPL) data reflects a shift from "capitulation" in April to "belief" in August, underscoring renewed confidence in ETH’s long-term prospects.

What It Means for the Market

This divergence between short-term caution and institutional confidence could result in heightened volatility and uneven price action. The $4,300 level serves as a critical test — a confirmed breakout could fuel further momentum, while rejection may lead to a correction.

Summary Table