Ethereum network actual profit and loss (NPL) data shows obvious profit taking. Therefore, driven by bearish sentiment, the downward retracement of ETH prices may continue.

Ethereum (ETH) prices faced selling pressure amid a broader correction in the cryptocurrency market, falling 3.5% to $3,550. In addition, Ethereum’s daily trading volume surged 84% to $14.8 billion.

Ethereum futures traders actively sell

As Ethereum's price struggles to break through the $4,000 mark, traders may need to pay attention to the behavior of futures market participants. The chart below shows the 7-day moving average of the Taker Buy-Sell Ratio, which measures the relative aggressiveness of buyers to sellers. Values ​​above 1 indicate buyer dominance, while values ​​below 1 indicate aggressive selling.

As shown in the chart, the ratio has failed to rise above 1 and has been falling sharply in recent days. This trend suggests that most futures traders have been actively selling Ethereum, either for speculative purposes or to take profits. The sharp drop in the indicator is a bearish sign, indicating that the current downside retracement may continue if this trend continues.

On the other hand, Santiment’s Network Realized Profit/Loss (NPL) suggests that holders are selling at a healthy profit, while a sharp drop suggests that holders are realizing losses, which could signal panic selling and investor capitulation.

For ETH, the NPL metric surged dramatically from 36.69 million on June 10 to 1.06 billion on June 11. This positive trend suggests that holders are selling at a healthy profit, hinting at the formation of a local top.

There is uncertainty in the approval of spot Ethereum ETF

ETH failed to capture the bullish momentum as it is unclear how long it will take for the SEC to approve the S-1 filing. Although Ethereum investment inflows hit a record high last week, investors are unsure if this will continue.

However, even if the U.S. Securities and Exchange Commission (SEC) approves applications from BlackRock, Fidelity, VanEck and others this week, investors are still worried that current market conditions are not conducive to demand for an Ethereum ETF.

For Ethereum price, there is a notable support area including the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419.

It will be interesting to see if the accumulation of Ethereum whales continues. In addition, macroeconomic issues are showing further signs of stress.