Ethereum On-chain Indicator Flashes Sell Signal as Short-Term Profitability Soars, What’s Next?

Ethereum (ETH) has flashed a sell signal as the Market Value to Realized Value (MVRV) ratio shows rising short-term holder profitability. As the risk of profit-taking increases, what’s next for Ethereum price? Will short-term holders force the price to drop below the $2,410 support level?

Ethereum MVRV Indicator Flashes Sell Signal

The 60-day MVRV ratio is surging and shows a widening spread with the 180-day MVRV. At press time, the 60-day MVRV stood at 8.26%, showing that short-term holders are sitting on significant unrealized gains. On the other hand, the 180-day MVRV is at 0.65, a sign that mid-term holders are barely in profit.

The widening spread between short-term and long-term holders commenced in late April and coincided with strong Ethereum price gains amid rising ETF inflows. Now, the 60-day MVRV has crossed above the 180-day, which signals that traders who bought in the last 60 days are outperforming long-term holders.

The appearance of this MVRV crossover usually highlights FOMO from traders who bought into the rally. Despite an Ethereum price breakout from a 30-day consolidation range, the risk of profit taking may trigger short-term pullbacks.

Mid-term holders that have held ETH for the last 180 days may also sell, as the MVRV has flipped positive after being negative between February and May 2025.

The likelihood of ongoing profit-taking further increases as the Network Realized Profit/Loss metric records slight spikes within the positive region. This shows that some traders may be selling to book profits.

The high short-term holder profitability and the recent spikes in realized profits are bearish signs signaling that Ethereum price could retreat in the near term.

What Investors Can Expect From Ethereum Price

As the risk of profit-taking increases, there is a likelihood that Ethereum price could fall below the $2,410 support level. ETH is only 13% above this support as it trades at $2,739 at press time per CoinMarketCap data. If there is no bullish catalyst to aid the same rally witnessed between April and May, ETH may breach this support and increase the likelihood of a downtrend to $2,000.

Moreover, the AO histogram bars show that the bullish sentiment is growing weak, and this could see Ethereum price fail to defend the $2,410 support level and enter a downtrend.

However, CoinGape revealed three chart patterns that explain why ETH may rally to $4,000 despite the ongoing correction. If another rally commences, it may reduce the risk of profit taking and avoid a drop below $2,410.

In conclusion, Ethereum price is at risk of a correction to $2,410 as the MVRV indicator flashed a sell signal. This correction may be fueled by short-term holders who bought in the last 60 days and are looking to book profits.

For a more detailed Ethereum price prediction from 2025 to 2030 – Read This.