Ethereum Rally Slows Amid Profit-Taking, Liquidity Remains Supportive

Ethereum (ETH) has continued its upward momentum, but at a slower pace than last week's sharp rally. The price has held above $2,400 and is trading near $2,500, indicating a well-supported uptrend.

The recent move above the average on-chain cost basis of $2,306 may have unlocked selling pressure from holders who were previously underwater and are now taking modest gains.

Onchain profitability data also points to increased profit-taking. Ethereum's Spent Output Profit Ratio (SOPR) has remained above 1 over the past week, indicating that ETH moved on-chain during this period was sold at a profit.

Despite higher profit-taking, broader liquidity conditions remain supportive due to continued growth in the stablecoin market and institutional demand for Ethereum exposure. US Spot Ethereum exchange-traded funds (ETFs) pulled in $234.51 million on Thursday, extending their inflow streak to nine consecutive trading days.