Long term Ethereum investors are rushing to take profit: Warning of upcoming bearish pressure.

The recovery of Ethereum has stalled in recent days, as ETH has continuously traded within a sideways range under increased selling pressure.

The main reason comes from long-term investors (LTH) looking to take profits — a trend that history has shown often signals important market reversals. Although not a new phenomenon, its re-emergence is creating potential risks that threaten short-term price gains.

Large investors of Ethereum start to sell out

The LTH Net Unrealized Profit and Loss index (NUPL) shows that each time it exceeds the threshold of 0.65, the price of Ethereum often faces strong pressure. The reason comes from the fact that the accumulated profit has reached a saturation level, causing veteran investors to prioritize taking profits instead of continuing to hold, which in turn leads to sideways price movements or slight corrections.

Currently, Ethereum is repeating a pattern similar to previous cycles. When long-term holders ( long-term investors ) realize significant profits, the increasing wave of selling is weakening the upward momentum of ETH. Buyers are becoming cautious in the face of selling pressure, causing ETH to easily enter a prolonged accumulation phase.

LTH-NUPL of Ethereum | Source: GlassnodeThe Coin Days Destroyed index (CDD) further solidifies this trend, clearly reflecting the liquidation activities of LTHs. In the past 24 hours, CDD recorded the strongest increase in two months, highlighting the rising wave of selling.

This move often signals the next downside risk. The selling of LTH at high prices indicates limited confidence in an immediate recovery. Unless there is strong cash flow from other investor groups, the macro momentum of Ethereum is signaling a cooling period.

CDD of Ethereum | Source: Glassnode## ETH price may continue to move sideways

Currently, Ethereum is trading around 4,294 USD, firmly above the support level of 4,222 USD. However, the major challenge lies in ETH's continuous failure to break through the 4,500 USD mark in recent days, making this level an important resistance barrier for the “king of altcoins.”

The daily ETH/USDT chart | Source: TradingViewThis situation indicates that ETH may continue to fluctuate within a narrow range in the short term. As long-term investors (LTH) take profits, the upside potential is limited, causing ETH to remain flat between 4,222 USD and 4,500 USD until new buying pressure emerges in the market or the current selling pressure is absorbed.

If other investors absorb the selling pressure from the LTHs, the recovery potential remains intact. Once ETH successfully exceeds the 4,500 USD mark and turns this level into support, the coin may move to test the 4,749 USD region, opening up opportunities to restart a broader growth trajectory.

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