Ethereum price nears $4,400: 97% of holders in profit — is the world's second-largest cryptocurrency heading to $7,000?

Economic Times

a day ago

Ethereum's fundamentals remain strong, and its ecosystem is expanding rapidly. Analysts forecast $7,000 or higher within 12–18 months if DeFi, NFTs, and tokenized real-world assets see broader mainstream adoption.
Ethereum price today: Ethereum (ETH) is trading steadily near $4,186 after a recent strong rally, with the world's second-largest cryptocurrency now in a consolidation phase. Traders are watching closely as technical signals and on-chain metrics hint that a major breakout could be on the horizon.
According to Glassnode, nearly 97% of ETH addresses are in profit, reinforcing bullish sentiment. However, such high profitability also raises the possibility that short-term profit-taking could spark a brief pullback.
Ethereum's stability is supported by strong institutional inflows, healthy on-chain activity, and robust ETF demand. Renewed interest in decentralized finance (DeFi) and layer-2 scaling solutions is also driving higher transaction volumes and staking participation.
On the flip side, short-term holders have been realizing substantial gains — averaging $553 million per day over the past week — which could put near-term pressure on prices if selling increases. In the immediate term, ETH is expected to trade within the $4,100–$4,400 range.
Bullish case: A clear breakout above $4,400 could open the door to $4,720–$4,800 in the coming days.
A clear breakout above could open the door to in the coming days. Bearish case: Failure to stay above $4,100 might trigger a drop toward the $4,050–$4,000 support zone. Traders are also tracking Bitcoin's movements, as broader market sentiment could heavily influence ETH's next move. Over the next few months, Ethereum's path will likely hinge on: ETF inflows & institutional adoption — sustained capital could power a run beyond $5,000 .
— sustained capital could power a run beyond . Network upgrades — scaling advancements like Danksharding could enhance utility and investor confidence.
— scaling advancements like could enhance utility and investor confidence. Macro conditions — interest rate shifts and U.S. regulatory clarity will be key drivers. If momentum holds, analysts expect ETH could test the $5,500–$6,000 range by late 2025. With its strong fundamentals and expanding ecosystem, Ethereum remains a central pillar of the digital economy. Analysts forecast ETH could challenge $7,000 or higher within the next 12–18 months, especially if DeFi, NFTs, and tokenized real-world assets achieve mainstream adoption.
While the 97% profitability rate signals strong holder conviction, it also means periodic corrections are likely as traders lock in profits. Still, Ethereum's long-term trajectory remains bullish, solidifying its role as a backbone of Web3 innovation.
Ethereum is consolidating, but a breakout above $4,400 could trigger the next leg higher. With institutional inflows rising, network development advancing, and long-term forecasts bullish, ETH may be gearing up for another major rally — though short-term volatility should be expected. Q1: What does it mean that 97% of Ethereum addresses are in profit? This means nearly all current ETH holders bought below the current price, indicating strong recent gains. While this shows bullish sentiment, it also suggests some investors might take profits soon, causing short-term price volatility.
Q2: What key price levels should investors watch for Ethereum in the short term?
The critical support zone is around $4,100, while resistance lies near $4,400. A breakout above $4,400 could spark a rally toward $4,800, while a drop below $4,100 might lead to a pullback toward $4,000.
Q3: How do institutional investments impact Ethereum's price? Growing inflows from ETFs and institutional buyers provide stable capital and help drive price growth, supporting Ethereum's medium- to long-term bullish outlook.
Q4: What role do network upgrades play in Ethereum's future price?
Upgrades like Danksharding and layer-2 scaling improve transaction speed and reduce fees, making Ethereum more attractive for DeFi and NFT projects, which can boost demand and price.
Q5: What are the major risks Ethereum investors should consider now? Short-term profit-taking, regulatory uncertainty, and macroeconomic factors like interest rate changes can cause price dips despite overall positive fundamentals.