- Ethereum’s rally cools as whale liquidation raises leverage-related concerns
- Profit-taking noted near $2,520, but long-term holders still retain 2M ETH
- Analysts see $4K as pivotal, breakout could lead to $5.6K–$10K, or a pullback
Ethereum’s recent rally has sparked renewed investor optimism, but signs of short-term exhaustion have started to surface. After surging more than 50% since early July, Ethereum is now consolidating below $3,800.
Whale Liquidation Raises Risk Awareness
According to Onchain Lens, a high-profile trader, AguilaTrades, experienced a partial liquidation on a $ETH long position. The liquidation involved 7,160 ETH, valued at $26.17 million, on 15x leverage. This incident follows a dramatic trading streak where the trader recovered from a $35 million loss, only to face another $31 million downturn.
The "Mysterious Whale" @AguilaTrades got partially liquidated for 7,160 $ETH, valued at $26.17M, on his $ETH long position with 15x leverage.
— Onchain Lens (@OnchainLens) July 22, 2025
Aguila Trades is like a roller coaster: he faced a loss of $35M then made it all back and then left with a loss of $1M, and now he's down… pic.twitter.com/qWs2DI8Gyc
Cost Basis Data Signals Strategic Moves
Glassnode’s cost basis heatmap revealed notable profit-taking near the $2,520 level. This was marked by a visible reduction in holdings around July 1. Despite this, holders have retained nearly 2 million ETH, suggesting long-term conviction remains intact.
This behavior indicates three key developments. First, profit-taking occurred at logical resistance. Second, holders expect further upside. Third, new demand appears to be absorbing the sell pressure. Consequently, supply is shifting from short-term hands to those with stronger conviction.
$ETH Cost Basis Distribution Heatmap shows profit-taking from buyers around $2,520 – visible in the fading red band from around July 1. But they still hold nearly 2M ETH. Takeaways: 1) strategic profit taking, 2) expecting more upside, 3) new demand is absorbing supply. pic.twitter.com/GPMONKKv2x
— glassnode (@glassnode) July 22, 2025
Analysts Split Between Short-Term Pullback and Long-Term Potential
Analyst Michaël van de Poppe noted Ethereum’s rise as “enormous,” pointing out its 50% gain since early July. He suggested that a pullback may occur either at current levels or near $4,100.
The chart shows a rising wedge pattern and bearish divergence on the RSI. These signals often precede minor corrections.
Ali Martinez emphasized the importance of the $4,000 level. A confirmed weekly close above it could push Ethereum toward $5,600 and even $10,000. However, rejection at resistance may bring retests of $3,100 or even $2,900.
Current Price Action and Market Outlook
Ethereum currently trades at $3,703, down 2.3% in the last 24 hours. Still, it has gained over 24% this week. With a market cap of $447 billion and a circulating supply of 120 million ETH, the trend remains bullish.
