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Ethereum shows signs of potential correction

Ethereum's price surge raises concerns over a possible market pullback.

July 20, 2025 at 09:02 AM

Ethereum: Overbought and overcrowded, is ETH due for a cooldown?

Ethereum's recent surge brings both opportunity and risk for investors.

Ethereum shows signs of potential correction amid strong rally

Ethereum has surged with a 46.62% ROI in Q3, pushing the price to around $3,640. Despite this performance, analysts warn of potential signs of exhaustion. Currently, over 95% of Ethereum's supply is in profit, a level typically associated with profit-taking and downturns. The last time Ethereum experienced such significant gains in November, a subsequent decline followed. Analysts are now speculating if Ethereum will cool off, especially as Bitcoin dominance appears to be shifting, potentially signaling a rotation of capital back into Bitcoin, which may put pressure on Ethereum's price.

Key Takeaways

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Ethereum reached a 46.62% ROI in Q3, surpassing previous quarters

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Over 95% of Ethereum supply is currently in profit

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Historical trends suggest potential for significant pullback

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Bitcoin's rising dominance could influence Ethereum's market

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Recent whale purchases indicate strong investor interest

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Technical indicators show Ethereum may be due for a correction

"With over 95% of the supply in profit, we are entering a historically saturated zone."

This highlights the risk as profit-taking may begin soon.

"Ethereum may be due for a pullback, especially as BTC dominance shows signs of a resurgence."

This reflects concerns over market stability after significant gains.

The impressive rise of Ethereum raises difficult questions for investors. With over 95% of the supply in profit, it suggests that many holders may look to cash in their gains. If history is any guide, Ethereum may be close to a pullback. Additionally, with Bitcoin showing rising dominance, it could divert capital pressure away from Ethereum. This shift raises concerns for those looking to invest at elevated levels. Economic shifts in the cryptocurrency market often create volatility that can lead to significant price retracement, especially after a rally.

Highlights

Over 95% of Ethereum supply is in profit, signaling profit-taking might begin soon.
Ethereum's rally appears strong, but is a significant pullback on the horizon?
Bitcoin dominance rising might be bad news for Ethereum's short-term outlook.
Historical trends suggest Ethereum could face a steep correction soon.

Potential correction in Ethereum raises concerns for investors

A significant portion of Ethereum's supply is in profit, raising the risk of a market pullback. Bitcoin's rising dominance further complicates the outlook, suggesting investors should prepare for potential volatility.

Investors will need to keep a close eye on market signals in the coming weeks.

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ethereum cryptocurrency bitcoin investing market finance technology cryptocurrency

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