Ethereum Rally Slows as Profit-Taking Takes Hold Amid Stablecoin-Led Liquidity Growth

Ethereum has maintained its price above $2,400 despite profit-taking slowing down the rally. The cryptocurrency traded near $2,500 this week after a sharp surge last week, but investors appear to be taking profits as it moved above its average on-chain cost basis.

Onchain profitability data indicates increased profit-taking, with Ethereum's Spent Output Profit Ratio (SOPR) remaining above 1 over the past week. This suggests that, on average, ETH was sold at a profit during this period.

Broad liquidity conditions remain supportive due to continued growth in the stablecoin market and ETF inflows. Stablecoins injected fresh liquidity into the crypto market with inflows crossing $4.1 billion over the past two weeks, while US Spot Ethereum exchange-traded funds (ETFs) pulled in $234.51 million on Thursday.

However, derivatives activity has yet to support the rally, with open interest failing to recover meaningfully following a recent leverage flush and major short-liquidation event.