Ethereum (ETH) has dropped by 17% since the June 11 swing high of $2,889 as the broader crypto market continues to bleed due to geopolitical concerns. At press time, Ethereum price trades at $2,441, with a 4.5% decline. Meanwhile, signs of profit taking are emerging after a spike in the Network Realized Profit metric as whale wallets offloaded 316,000 ETH within 24 hours.
Ethereum Network Realized Profit Spikes to 30-Day High
The Network Realized Profit/Loss (NPL) metric from Santiment shows an increase in profit-taking activity after traders aggressively sold ETH yesterday. This metric surged to 535 million, reaching the highest level since mid-May.
Past data further shows that a spike in the NPL metric has often led to a correction shortly after, as more tokens are dumped on exchanges. This happened in December 2024 when traders started to sell ETH at the top to book profits, causing the Ethereum price to fall from above $4,200 to around $3,200 within weeks.
Per a recent CoinGape report, a majority of traders who are booking profits may be short-term holders, after on-chain data revealed that Ethereum retail traders are likely cashing out. This report showed that addresses holding between 10 and 10,000 ETH have been selling for several weeks.
However, a deep dive into whale activity also shows that the confidence of long-term holders may be waning due to the altcoin’s continued underperformance. This is contrary to the behaviour of new investors after new Ethereum wallets spiked by 33% year-over-year.
Age Consumed Spikes as Whales Sell 316,000 Tokens
One of the top indicators suggesting that whales could be looking to sell Ethereum after the recent accumulation spree is “Age Consumed.” Within 24 hours, this metric surged by 172% from 211 million ETH-days to 577 million.
When this metric surges, it shows that a large number of dormant coins are suddenly active, and this points towards increased activity from long-term holders. Moreover, data from IntoTheBlock highlights a notable decline in the large holder netflows, which supports a bearish narrative for the Ethereum price forecast.
These netflows dropped from 268,000 ETH to -48,750 ETH, indicating that whale holdings have dropped by 316,000. This drop, especially to the negative zone, indicates that Ethereum is leaving whale wallets and is likely ending up on exchanges.
Meanwhile, large whale transactions also increased by 80% from 1.89 million to $3.71 million, another sign that whale activity is on the rise. If demand remains weak and fails to absorb these coins, it could have a bearish implication on the ETH price performance.
Nevertheless, institutions seem to be still accumulating Ethereum despite the price weakness. This week, the total inflows to spot ETH ETFs totaled $40 million per SoSoValue data. However, these volumes were over ten times lower than the $528 million inflows recorded last week.
Therefore, as the Ethereum price shows weakness, traders seem to be giving up, with some choosing to book profits. Whales, who have been aggressively accumulating ETH in recent months, also appear to be mitigating risk as large holder netflows dropped by 316,000.
