Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Ethereum is closing in on a historic test, hovering just 6.4% below its all-time high of $4,891. Despite persistent sell-offs from retail traders, the asset’s upward momentumcontinues, signaling a potential breakthrough that could set the stage for new record levels. Retail Sentiment Misfires: Lessons From Past Greed And Corrections
Santiment, a popular platform in on-chain and market analytics, recently highlighted in a postthat Ethereum is now within striking distance of a historic milestone — just 6.4% away from its all-time highof $4,891 set on November 16, 2021. Related Reading Ethereum Price Breaks Toward $5,000, Analyst Reveals When To Sell Everything And Why 2 days ago
This approach toward record territory has been accompanied by a surprising trend: retail traders are consistently selling off their holdings even as the second-largest cryptocurrency by market cappushes higher. The divergence between price action and retail sentiment is becoming increasingly notable in this rally.
When smaller marketparticipants become overly optimistic, prices tend to cool off; conversely, when fear and skepticism prevail, the market often continues its upward march. This pattern has played out multiple times in the past, making the current wave of selling from retail traders a potentially bullish signal. ETH retailers are offloading their holdings | Source: Santiment on X
Santiment also pointed to previous scenarios to support this observation. On June 16, 2025, and again on July 30, 2025, Ethereum experienced periods of extreme retail greed, which were followed by sharp corrections as the market recalibrated. These historical instances underline the contrarian nature of market psychology, where excessive optimism can precede pullbacks, while disbelief and hesitation can pave the way for price growth.
In the current rally, retail sentiment has been marked by FUD (fear, uncertainty, and doubt) and disbelief. Despite Ethereum consistently printing higher highs, many traders remain convinced that the move is unsustainable. Loose Coins Changing Hands as Ethereum Eyes Historic Breakout
This emotional disconnect between sentiment and price action may be providing fuel for Ethereum’s continued ascent, as stronger hands — particularly institutionalplayers and large-scale investors — absorb the supply being offloaded by smaller traders. If the current dynamics persist, a break above $4,891 could happen sooner than many expect, potentially marking a significant chapter in Ethereum’s market history
The platformfurther noted that major stakeholders have been actively accumulating Ethereum, taking advantage of the coins that smaller traders are currently willing to sell. This quiet but steady accumulation suggests that larger players are positioning themselves for a potential breakout. Related Reading Ethereum Rally Not Fueled By Bitcoin Dump, On-Chain Signals Show 2 weeks ago
With minimal sentiment-based resistancein the market, prices appear well-positioned to push higher. If this trend continues, Ethereum could break through its previous all-time high and set new records in the near future, marking a historic moment for the asset. ETH trading at $4,702 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Ethereum, chart from Tradingview.com