Ethereum Faces Possible Short-Term Correction to $3,000 Amid Overbought Signals and Whale Profit-Taking

• Ethereum’s recent price surge has prompted significant profit-taking by major holders, signaling a potential short-term correction amid sustained bullish sentiment.

• Notably, an Ethereum whale realized nearly $10 million in gains within two weeks, reflecting strategic portfolio management in a volatile market.

• According to COINOTAG sources, despite short-term pullbacks, long-term investors maintain strong confidence in Ethereum’s growth trajectory.

Ethereum faces a possible correction to $3,000 after a strong rally, with whale activity and RSI indicators pointing to profit-taking amid ongoing long-term bullish momentum.

Ethereum Whale ‘0x8C08’ Realizes 38% Profit Amid Market Rally

On July 23, Ethereum wallet “0x8C08” executed a partial exit by selling 8,005 ETH for approximately $30.03 million, averaging $3,751 per token. This move followed an initial acquisition of 9,582 ETH at $2,725 each just 14 days earlier, yielding a remarkable 38% return in a short span. The transaction data, verified by Lookonchain, underscores the dynamic nature of large-scale trading strategies within the crypto ecosystem.

Importantly, the whale retained 1,577 ETH, valued near $5.96 million, indicating a calculated approach rather than a full liquidation. This partial profit-taking aligns with broader market trends, as Ethereum’s price surged over 50% month-to-date, attracting both speculative and institutional interest.

Profit-Taking Amid Sustained Long-Term Holder Confidence

Analysis from Glassnode’s Cost Basis Distribution Heatmap reveals a recent decline in high-volume buying clusters around the $2,520 price level, suggesting that early July buyers are capitalizing on significant unrealized gains. Despite this, nearly 2 million ETH remain held within this cohort, demonstrating reluctance to sell en masse.

This behavior indicates that fresh market demand is absorbing sell pressure effectively, a sign that the Ethereum market is undergoing healthy profit-taking rather than a wholesale distribution phase. Such dynamics often precede consolidation periods, allowing for price stabilization before the next upward move.

Technical Indicators Signal Potential Short-Term Correction to $3,000

Ethereum’s recent eight-day winning streak has pushed its 14-day Relative Strength Index (RSI) to approximately 78, entering overbought territory. Historical data shows that similar RSI levels preceded an 18.6% correction in late May, highlighting the likelihood of a near-term pullback.

Following the recent peak near $3,800, Ethereum has begun to show signs of cooling off. Technical analysis suggests a possible retracement to the $3,000–$3,200 range, coinciding with the 20-day exponential moving average (EMA), a critical support level that often acts as a price floor during corrections.

Maintaining a Bullish Long-Term Structure Despite Pullback

Despite the anticipated short-term correction, Ethereum’s weekly chart reveals that the price remains comfortably above its multi-year ascending trendline. This trendline has historically provided robust support, reinforcing a favorable price structure for continued growth.

Should ETH hold above this trendline, it could facilitate a reaccumulation phase, setting the stage for renewed upward momentum toward resistance levels between $3,800 and $4,100. Market analysts remain optimistic, with some projecting Ethereum to reach $8,000 within the coming months, contingent on sustained demand and macroeconomic factors.

Conclusion

Ethereum’s recent whale-driven profit-taking and overbought RSI conditions suggest a short-term correction to around $3,000 is plausible. However, strong long-term holder conviction and technical support levels indicate that this pullback may serve as a healthy consolidation rather than a trend reversal. Investors should monitor key support zones and whale activity closely, as these factors will likely influence Ethereum’s trajectory in the near term.