Ethereum Soars 30% in Last 7 Days Despite Active Profit Taking of Traders

Ethereum has successfully shown its investors that it has growth potential despite going through one of the strongest sell-offs in the asset's history following the liquidations of large institutional investors like 3AC, Celsius and others.

A wild market ride

In the last eight days, Ethereum has gained around 40% to its value if we measure the current rally's result from the absolute bottom reached back on June 18. Such strong growth was most likely fueled by a concentration of "buy" orders of $900.

📈 #Ethereum is enjoying a nice weekend rise, and the #2 market cap asset's price is now up +30% in the past week. It appears there is quite a bit of profit taking on this mid-sized bounce, and the low whale activity indicates it isn't coming from them. https://t.co/MsZUhgjwCR pic.twitter.com/NWFMmWFRGq

— Santiment (@santimentfeed) June 25, 2022

Most traders were actively looking for a perfect entry into Ethereum, which was more than possible after the asset plunged below $1,000 and then faced even bigger selling pressure that caused a plunge to the $800 range.

The massive liquidation volume and lack of liquidity allowed investors to push the price of the second largest asset on the market back to $1,200 despite the market capitalization of Ether remaining below the June 1 level.

Traders still prefer profit-taking

Unfortunately, the 30% price increase is not enough for traders and investors to keep supporting the asset as their on-chain activity suggests that the majority of ETH holders are actively taking profits, which creates additional pressure on the assets and prevents them from breaking local resistance levels.

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Luckily, Ethereum whales' activity remains relatively low, which shows that selling is not coming from them and the asset still has a chance of showing upward volatility since sales volume remains relatively low.

At press time, Ethereum is moving around the $1,200 price range and consolidating because of a lack of trading volume on the weekend.