BlackRock's Aggressive Profit-Taking Crushes Ethereum Rally

Ethereum's recent rally has come to an end as profit-taking accelerates, with BlackRock reportedly aggressively dumping its holdings of ETH and BTC. This development comes after Ethereum ETFs pulled in $508.6 million since Monday, the highest weekly inflows observed in months.

The cryptocurrency had reached a 6-month resistance level at $2,429, which could indicate a potential retracement. Furthermore, Ethereum was deep in overbought territory, with its price momentum cooling down significantly in the last 24 hours compared to its performance on Wednesday and Thursday.

Whale orderbooks reveal heavy bearish positioning, with both spot and derivatives positions signaling profit-taking. On Binance and OKX, fulfilled ETH whale orders on the spot market amounted to $2.66 million and $8.44 million respectively, while net short positions worth $767.16 million were registered on OKX futures.

The decline in short positioning by whales suggests that shorts might be retreating, but the significant profit-taking observed at recent highs indicates a potential selloff if demand cools off.