Ethereum Faces Pressure as Profitable Addresses Hit New Peak

Ethereum (ETH) is showing increasing signs of selling pressure as a record number of wallet addresses move into profit.

The asset has already dipped below $4,500, with some analysts expecting further correction, while others maintain an optimistic long-term outlook for ETH.

Ethereum Whales Begin Profit-Taking Amid Historic Profitability Levels

According to Glassnode data, the number of ETH addresses in profit reached an all-time high of over 155 million in September.

“ETH addresses in profit hit highest in history! Over 155 million ETH wallets are now in profit, marking the fastest rate ever,” Coin Bureau noted.

Ethereum Addresses in Profit. Source: Glassnode

This record highlights the asset’s long-term strength and broad investor participation. Yet, it also raises the risk of short-term volatility as elevated profitability often precedes sell-offs.

On-chain activity appears to reflect this risk. Lookonchain, a blockchain analytics firm, reported that Trend Research transferred 16,800 ETH, valued at approximately $72.88 million, to Binance.

This move has fueled speculation of a shift in outlook, with some viewing it as preparation for sales amid secured profits.

“Is Trend Research About to Start Selling ETH Again? The ETH just transferred out is part of the 43,377 ETH they purchased in early September. After buying in early September, they held a total of 152,000 ETH, with an average cost of about $2,869,” analyst EmberCN added.

Profit-taking was also seen among other whales. Address (0xB04) sold 3,000 ETH for $13.14 million. Despite the sale, the whale still holds 9,804.32 ETH, worth around $42.57 million.

Derivatives markets reinforce the bearish sentiment. According to an analyst, ETH traders on Binance have turned sharply negative. The Taker Buy/Sell ratio dropped below 0.87 on September 19.

“This marks only the third time this year it has fallen so low. Back in January and February, the ratio reached as low as 0.85, coinciding with a bearish trend that pushed ETH below $1 500. The 7-day average currently stands at 0.93, marking the lowest level of the year,” Darkfost noted.

Ethereum Taker Buy/Sell Ratio. Source: Darkfost_Coc

Why ETH’s Price Could Fall Below $4,000

Amid these signals of growing pressure, ETH’s price action reflects the strain. BeInCrypto Markets data showed that the altcoin has dropped 10.5% over the past week.

The price decline followed the Federal Reserve’s recent 25-basis-point rate cut, yet ETH remains below recent peaks, with its rally toward $5,000 stalling. At the time of writing, the second-largest cryptocurrency was trading at $4,153, down 7.37% over the past day.

Ethereum (ETH) Price Performance. Source: BeInCrypto Markets

Meanwhile, some market analysts believe that ETH could drop further, potentially falling below the $4,000 price level.

“ETH is likely to hit $3,900 to $4,000 ranges again. It’s missing one nice wave. I don’t think we’ll hit $6,000 this cycle, though,” trader Philakone wrote.

Analyst Ted Pilows also highlighted that ETH still has an unfilled CME gap in the $3,000–$3,500 range.

“Most CME gaps are filled before a big move, so a correction could happen.” Pillows added

Despite these headwinds, long-term optimism persists. In another post, the analyst stated that Coinbase’s stock chart, often a leading indicator, points to a potential correction followed by new highs, which ETH may mirror.

“Global M2 supply is now projecting $18,000-$20,000 ETH by cycle top. Even if $ETH pulls half of that, it’ll trade above $10,000. I’m still long-term bullish on Ethereum and think that a sweep of the $4,000 liquidity zone could happen before reversal,” Pillows forecasted.

Thus, while short-term risks loom, Ethereum’s trajectory supports an overall bullish trajectory in the long run.

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