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- $1.7B in ETH profit-taking was absorbed by long-term holders.
- Strategic reserves and ETFs now hold 8.2% of total ETH supply.
- Tight supply is turning volatility into a bullish structural edge.
Ethereum (ETH) is moving deeper into price discovery after absorbing a wave of profit-taking without losing bullish momentum. According to Glassnode data, traders realized approximately $1.7 billion in ETH at $4,590 — the largest spike in realized profit since 2021. Historically, such events have triggered sell-offs as market euphoria peaks and weak hands exit.
This time, the outcome was different. ETH climbed 2.58% intraday, breaking two resistance zones within 48 hours. Long-term holders and whale wallets absorbed the sell-side flow, preventing the typical cascade of risk-off sentiment.
Tight Supply Flips the Script on Volatility
Traditionally, volatility has been a double-edged sword for Ethereum, often leading to sharp reversals. However, recent data suggests that price swings are being transformed into structural bullish signals. The sale of 370,000 ETH at $4,590 served as entry liquidity for strong holders, reinforcing their control over the market.
The Strategic ETH Reserve (SER) chart further underscores this trend, showing that SER and ETF entities now hold 8.2% of Ethereum’s total supply. This concentration reduces available float, tightening supply and increasing the market’s resilience to sell pressure.
Strong Hands Drive Risk-On Momentum
With strong cohorts hoarding ETH, the market structure has shifted. Instead of triggering capitulation, profit-taking is now testing and confirming long-term holder dominance. This creates a self-reinforcing cycle: tight supply absorbs volatility, maintains bullish sentiment, and fuels FOMO-driven buying.
Also Read: Ethereum Foundation Offloads $18M ETH as Price Nears All-Time High
As a result, Ethereum’s march toward new highs is becoming more stable compared to previous cycles, where sudden profit spikes often marked market tops.
Ethereum’s latest price action suggests that its supply dynamics are evolving. Strategic accumulation by strong hands, combined with ETF and reserve holdings, is converting exit liquidity into a bullish advantage. If this structural shift persists, ETH’s path to price discovery may remain smoother and more sustainable than in past rallies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
