Ethereum’s 60% May rally pauses: What’s next as THIS group cashes out?

by
  • Ethereum took a wild 60% leap in May, but now the long-term holders are bailing.
  • Over $3.4B worth of ETH has quietly slunk off exchanges, hinting at rising confidence.

Ethereum [ETH] pulled off something extraordinary in May—a 60% rally—riding the rising tide of $3.42 billion in fresh accumulation.

But while the bulls were busy chest-bumping each other, the long-term holders began to sneak off like thieves in the night—perhaps cashing in, perhaps realizing that the music might just stop soon.

Cooling off or cooling up? Is there any difference?

After effortlessly breezing past the $2,500 mark in early May, Ethereum now seems to be taking a well-deserved nap, or maybe just waiting for the next big thing.

The daily chart tells the tale of a noticeable slowdown, like a car that suddenly realizes it’s not quite as fast as it thought, with price action flattening and volume thinning out near the $2,509 level.

This is the kind of consolidation you see after a 60% rally, where ETH peaked at $2,617 and then retreated, like a runner catching its breath after crossing the finish line. Meanwhile, the RSI is hovering just below the overbought level at 67—screaming bullishness without quite crossing into “I’m too hot to handle” territory.

As the long-term holders reportedly start trimming their positions and buyers cautiously tiptoe around, it feels like ETH might be entering the dreaded “wait-and-see” phase. It’s like the calm before the storm, only nobody knows if the storm is coming or if it’s just a random gust of wind.

LTH offloading shows uncertainty. Or is it just bad timing?

According to Santiment, the Age Consumed metric has been flashing red twice in the past few days, signaling two of the largest surges in long-term holder activity since October. What’s going on? Are they making a run for it? Maybe they just realized they can’t keep their ETH under their pillows anymore.

These sudden spikes in offloading, the largest in seven months, suggest that these seasoned investors might be taking their profits and running—always a sign of possible local tops. It’s like the party’s winding down, and the cool crowd is already calling an Uber.

The scale of these moves raises serious questions about Ethereum’s short-term prospects. If these long-term holders continue to lose conviction, we might see the selling pressure build like a tidal wave, threatening to drown the bullish momentum. Talk about a mood killer.

The Great Ethereum Exodus. Should we be concerned?

In the past month, over 1.34 million ETH—worth more than $3.42 billion—has quietly snuck off centralized exchanges, like a thief in the night. This shift in investor behavior seems to signal that people aren’t here for the short-term hustle—they’re in it for the long haul. Maybe they’re finally getting wise, or maybe they’ve just run out of patience.

The sharp drop in supply, paired with the momentum from the Pectra upgrade, shows that market participants are repositioning for long-term holds. Looks like they’re settling in for a slow burn, not a flash in the pan.

Read More

2025-05-23 02:33