Sellers exhausted, ETFs surging—ETH may be closer to a breakout than most think | Credit: Derek Fenech
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Key Takeaways
Despite early-year underperformance, ETH has surged 150% since April, with seller exhaustion hitting a yearly high.
While some analysts warn of profit-taking, Ethereum’s ETF momentum and CMF support the case for a breakout.
Failure to hold key support could send ETH to $3,192 or $2,985, but overall setup favors a move toward $4,944.
A “hated” rally. This phrase fits Ethereum’s (ETH) price action this month.
For most of the year, some market participants mocked the cryptocurrency for its underwhelming performance.
However, since hitting a low of around $1,450 in April, Ethereum’s price has increased by almost 150%. As a result, many have called for ETH to hit the psychological $4,000 mark.
While it has stalled in the race to that part, this analysis reveals that the current price action is only a temporary pause before another breakout.
Ethereum Sellers Exhausted
As of this writing, Ethereum’s price hovers around $3,620. CCN’s analysis of the coins on-chain showed that the sellers’ exhaustion constant has played a key role in the recent hike.
The Seller Exhaustion Constant is a metric that blends sentiment and volatility into one signal. Specifically, it looks for low volatility when most holders are sitting on losses.
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When the metric drops, it indicates high selling pressure, potentially leading to a price correction. However, in ETH’s case, Glassnode data shows that the seller exhaustion constant has reached a yearly high of 0.13 despite the recent pullback.
On-chain signals may look bullish — but not everyone is buying the hype. Some analysts are urging caution, warning that the rally could run on borrowed time.
Amr Taha, for instance, flagged the risk of imminent selling pressure, suggesting that the current momentum could flip fast, dragging prices lower if profit-takers step in en masse.
“While recent price action in Ethereum as been fueled by short squeezes , but such rapid moves often lead to profit-taking as traders lock in gains,” The analyst posted on CryptoQuant.
At the same time, ETH, via the exchange-traded funds (ETFs), is outperforming Bitcoin. Over the past 10 days, Ethereum ETF inflows have topped $3 billion, outpacing Bitcoin and signaling a surge in institutional appetite.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
