🤑 Ethereum just registered its highest network realized profits in 3 weeks. This may seem counterintuitive to see a spike of $74.58M in realized profits while $ETH’s price has dropped ~5.5% over the past 3 days. But here’s why:

📌 Holders with a much lower cost basis are selling into the dip. ETH was trading below a $2,000 market value throughout much of February and March. This was a time when savvy traders accumulated, despite war fears and notably uncertain times in crypto at that moment. Wallets that accumulated during those months are still in profit even with this mid-May decline, and many have decided to sell while they feel they still have the opportunity to enjoy a profit.

📌 Volume of on-chain movement increased. The 4h candles show notable price compression near $2,241, suggesting heightened on-chain activity (distribution). More transactions = more realized P&L events. Even modest individual profits aggregate to large network-level totals when volume is elevated.

🧐 Based on current ETH trader behavior, lean cautious... but this doesn’t necessarily imply you should get bearish. Watch for deeper realized losses as a potential bottoming signal, and don't position aggressively until the distribution phase shows clear signs of ending.

🔗 ETH and other asset realized profit/loss indicators are available on this handy Santiment chart.