Ethereum Teeters at $2.8K as Traders Cash Out—Is This the Top or Just a Speed Bump?

ETH’s rally faces a reality check as profit-taking surges near the $2.8K mark. The question isn’t whether whales are dumping—it’s how long retail can keep buying the dip before realizing their ’diamond hands’ are just bagholders in disguise.

Key factors to watch: Exchange inflows spiking, derivatives open interest thinning, and that eerie silence from crypto influencers who were screaming ’10K EOY’ just last week. Meanwhile, Bitcoin’s sideways action isn’t helping—altcoins live and die by BTC’s volatility, and right now it’s playing dead.

The silver lining? Ethereum’s network activity still outshines most Layer 1 competitors (looking at you, Solana). But in crypto, fundamentals rarely matter until after the leverage flushes out. Brace for turbulence—or another masterclass in ’buy the rumor, sell the news’ from Wall Street’s crypto tourists.

Source: Coinglass

The increased spot ETH ETF flows were an early sign of a bullish phase. Almost three weeks ago, ETH rallied 12% in a day, going from $1,580 to $1,770. The next four days saw increased spot ETH demand for Ethereum, but the upward momentum of the largest altcoin slowed down.

Hence, a sustained uptick in spot ETF might not see immediate gains, although it does underline bullish confidence. Will this confidence see ETH push higher, or will short-term holders realize profits and halt the move?

Is Ethereum at risk from profit-taking activity?

Source: Glassnode

The percent supply in profit metric fell to lows not seen since November 2022. The price action of the past three weeks saw the metric surge higher. It was not at the 95% threshold that indicates overheated conditions.

Source: Coinalyze

Data from Coinalyze showed that the spot demand was significant over the past month.

The current rally was borne by spot demand, and its organic nature meant that the threat from short-term holders realizing profit is lessened.

Source: Coinglass

The 6-month ETH liquidation heatmap showed that the $2,718 and $2,878 levels were the next sizeable liquidity pockets that could attract prices higher. It was another hint that the MOVE will not halt at $2.6k.

Source: ETH/USDT on TradingView

The 3-day chart showed a supply zone at $2,750-$2,820. It lined up well with the liquidation heatmap and presented a bullish price target for traders to take profits at.

As things stand, it is unclear if ETH could immediately push higher and go above $3k.

The price action evidence suggested that a few weeks of consolidation beneath $3k might be necessary to build the ammunition for the next move.