Ethereum has gained more than 68% over the past three months, putting most near-term holders firmly in profit. Yet over the past week, the asset has stalled — losing 4.7% and trading flat in the last 24 hours.
This consolidation has pushed the Ethereum price inside a pattern of indecision where bulls and bears battle for control. While such setups can resolve in either direction, two on-chain metrics suggest the next move may favor the upside.
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Metric 1: Profit Supply Drop Points To Seller Exhaustion
The percentage of ETH supply in profit dropped from 98.4% on August 26 to a local bottom of 92.7% on September 1 — its second-lowest reading in a month. Normally, such declines reflect heavy profit-taking. But once profit supply hits local bottoms, ETH has historically rallied. For example, when the ratio fell to 91.8% earlier in August, ETH surged from $3,612 to $4,748 (over 31%) in just eight days.
This drop means a wave of sellers may already be out of the market, leaving ETH with fewer profit-sensitive holders who might panic-sell. In other words, selling intensity has likely weakened at a time when the Ethereum price is already consolidating at a breakout zone. And that’s a bullish sign.
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