Crypto market recap: Ethereum faces profit-taking pressure, Bitcoin consolidates amid market shifts

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Ethereum stalls below $5K

Ethereum struggles toward $5,000

Ethereum’s climb toward the $5,000 milestone stalled in late August, peaking at $4,955 before moving into a sideways range. Over the past week, ETH has lost 1.76%, dipping to $4,258 before stabilizing near $4,295. Analysts highlight aggressive futures selling that created a $570 million imbalance in favor of sellers, a pattern that historically coincides with local tops.

ETH price dynamics. Source: TradingView

Long-term holders (LTHs) have also added pressure by locking in profits. Glassnode’s NUPL metric signals profit saturation levels that often precede corrections, while Coin Days Destroyed has recorded a sharp spike, pointing to heightened selling activity from experienced investors.

Institutional flows amplified the bearish tilt. According to SoSoValue, on Sept. 5 Ethereum ETFs saw $446.71 million in outflows — the second-largest daily redemption on record — led by BlackRock’s ETHA fund. While some analysts attribute this to portfolio rebalancing, the outflows reflect caution following August’s strong rally.

Still, positive signs remain. An ICO-era participant recently staked 150,000 ETH worth $656 million, while firms linked to Alibaba founder Jack Ma have referred to ETH as a “reserve asset.” These moves underscore institutional and long-term confidence despite short-term turbulence.

Bitcoin holds key support

Bitcoin is consolidating near $110,500 after a corrective phase, finding support at the 100-day moving average. RSI indicators show weak momentum, but declining exchange reserves suggest long-term accumulation. Analysts argue that the supply contraction could trigger a new rally once demand strengthens.

Broader developments complicate the picture. Arkham Intelligence recently uncovered 45,000 dormant BTC tied to the Movie2K case, worth nearly $5 billion. In Germany, debate has reignited over whether such assets should be liquidated or incorporated into sovereign reserves. Meanwhile, Bitcoin mining difficulty has reached a record 134.7 trillion, pressuring smaller miners but strengthening network security.

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Gold’s surge above $3,586 has also renewed comparisons with Bitcoin. Critics like Peter Schiff argue BTC cannot be considered a safe-haven asset, while others point to its nearly 1,000% growth over the past five years.

Outlook

Ethereum faces profit-taking and institutional caution, while Bitcoin stabilizes amid macroeconomic challenges. The crypto market appears set for a consolidation phase, with future direction hinging on new inflows and stronger demand heading into Q4 2025.

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