Ethereum (ETH) Flashes a Sell Signal as MVRV Ratio Shows Rising Short-Term Holder Profitability

Ethereum (ETH) has flashed a sell signal as the Market Value to Realized Value (MVRV) ratio shows rising short-term holder profitability.

The price of Ethereum (ETH) may come under pressure as an indicator known as the Market Value to Realized Value (MVRV) flashed a sell signal. The 60-day MVRV shows that short-term holders are in significant profit, but as the risk of profit-taking increases, there is a chance that ETH could slip below the $2,410 support.

According to the 60-day MVRV chart, the 60-day realized value is widening with the 180-day realized value. At the time of writing, the 60-day MVRV is at 8.26%, which shows that short-term holders are sitting on massive gains.

However, the 180-day MVRV stands at 0.65, a sign that mid-term holders are still out-of-the-money. The widening spread between short-term and long-term holders began in late April and coincides with strong Ethereum price gains amid rising ETF inflows.

The 60-day MVRV also crossed above the 180-day, which signals that traders who bought in the last 60 days are outperforming long-term holders. This occurrence usually highlights FOMO from traders who quickly joined the rally.

But despite the breakout from a 30-day consolidation range, there is still a risk of profit-taking, which may trigger short-term pullbacks. Mid-term holders that have held ETH for the last 180 days may sell as the MVRV flipped positive. It had been negative between February and May 2025.

The likelihood of profit-taking increases further as the Network Realized Profit/Loss records slight spikes within the positive region. This shows that some traders may be selling to book profits.

The high short-term holder profitability and the recent spikes in realized profits are bearish signs that could see Ethereum price pull back.

As the risk of profit-taking increases, there is a possibility that Ethereum price could fall below the $2,410 support level. ETH is only 13% above this support as it trades at $2,739 at the time of press.

If there is no bullish catalyst to aid the same rally witnessed between April and May, then ETH may breach this support and increase the likelihood of a downtrend to $2,000. Moreover, the AO histogram bars show that the bullish sentiment is growing weak, and this could see Ethereum price fail to defend the $2,410 support level and enter a downtrend.

However, three chart patterns explain why ETH may rally to $4,000 despite the ongoing correction. If another rally commences, it may decrease the risk of profit-taking and avoid a drop below $2,410.