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BTC ATH Within Reach: Glassnode Maps Support, Warns of Underpriced Volatility

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Bitcoin (BTC) is once again knocking on the door of its all-time high (ATH), trading around $109,500 early Wednesday, a mere 2% shy of its $111,800 peak set nearly three weeks ago.

Yet beneath the surface of this upward momentum lies a market defined by compressed volatility, long-term holder profit-taking, and a growing divergence between futures and on-chain sentiment.

Long-Term Holders Cash In, But Supply Stays Sticky

Glassnode’s latest Week On-Chain report outlines how BTC recovered from a local low of $100,400, where demand re-emerged after a brief but sharp 9% drawdown.

According to the analytics platform, this dip rattled investor confidence, with the Fear and Greed Index momentarily entering “Fear” territory. However, the lack of mass panic selling, with only $200 million in on-chain losses realized, showed that capitulation was limited to the newest and most speculative market entrants.

Despite the resilience, Glassnode warned of increased profit-taking activity among long-term holders (LTHs). The cohort locked in a peak of $930 million per day in realized profits, a level historically associated with overheated markets.

Interestingly, this cycle seems to be defying tradition: despite the profit-taking, the proportion of Bitcoin wealth held by LTHs has increased. The report attributed this “unique market dynamic” to intense “maturation and accumulation pressures” overwhelming selling.

A key driver appears to be the spot Bitcoin ETFs and institutional participation, effectively locking up supply in long-term custody and making LTH wealth “significantly stickier.”

Indeed, on Monday alone, six out of eleven U.S. spot Bitcoin ETFs posted $386.2 million in inflows. These signals are also mirrored by recent data from CryptoQuant, which confirmed that U.S. buyers are reasserting dominance, with the Coinbase Premium index hitting a three-month high and the 90-day Cumulative Volume Delta (CVD) flipping green for the first time in four months.

Critical Levels for the Path Ahead

Looking at the markets, at the time of this writing, BTC had posted an almost negligible uptick of 0.1% in the last 24 hours. Over the past seven days, the gains stand at 3.8%, with the asset up 5.3% for the month. Meanwhile, daily trading volume sits at $34 billion, with a circulating supply nearing 19.9 million BTC.

With Bitcoin perched just below its ATH, the Glassnode report made clear the following technical and on-chain levels:

  • Downside Support: The $97,600 short-term holders (STH) cost basis is the critical floor. Holding above it will maintain a bullish structure. However, a break below risks shifting sentiment. Furthermore, strong support lies around the 111 DMA ($92,900) and 200 DMA ($95,400).
  • Upside Resistance: Breaking the ATH at $111,814 is the first hurdle. Beyond that, the next major on-chain resistance zone sits at $115,400. Additionally, sparse on-chain volume above current prices suggests a potential “air gap” exists, and if demand is strong enough, a swift move higher could occur once the ATH is surpassed.

However, volatility remains a wildcard, with Glassnode warning of a dense cluster of coins acquired near the current price that could potentially amplify reactions to moves, even as options markets remain oddly subdued. At-the-money implied volatility (ATM IV) has yet to reflect these brewing tensions, potentially signaling underpriced risk.

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Cryptocurrency

Ethereum Price Analysis: Is ETH Gearing Up for a Surge to $4K?

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Ethereum continues to show strong momentum as the price hovers just under a key level, supported by sustained bullish structure and growing market interest. With spot prices holding above major moving averages and an aggressive rally from June lows, all eyes are on whether ETH can break above the $4,107 level.

Technical Analysis

By ShayanMarkets

The Daily Chart

On the daily chart, Ethereum is respecting its bullish structure, having flipped the $3,300 zone from resistance into support. The 100-day and 200-day have also created a bullish crossover, providing additional confirmation of the trend.

Moreover, the RSI, which recently entered overbought territory, has slightly cooled down but remains elevated, suggesting that momentum might be overheated. Yet, the clean sweep and reclaim of prior highs around $3,300 reflect strength and commitment from buyers, and as long as this level holds, the bulls are in control.

This structure is a classic sign of trend continuation, especially when supported by strong volume and momentum indicators. If the price begins to expand again from this consolidation range, the next upside target would likely be the $4,400 region, where Ethereum topped during previous cycles.

Conversely, a break below $3,300 would raise concerns of a deeper retracement, but for now, that scenario seems less likely unless broader market weakness emerges.

The 4-Hour Chart

The 4H chart further supports the bullish case with a clearly defined ascending trendline holding the price. The asset continues to respect the trendline, and each dip has been met with strong buying interest, signaling that bulls are still active and defending the uptrend.

However, some caution is warranted in the short term, mainly due to the overbought conditions on the daily chart. If ETH fails to hold above the $3,700 zone or loses the ascending trendline, a short-term correction toward $3,500 would be a healthy reset. This level also aligns with the daily support block, making it a logical area for buyers to step in again if tested.

On-Chain Analysis

Ethereum Open Interest

On the sentiment side, Ethereum’s open interest across all exchanges has surged to over $27 billion, marking its highest point in years. This indicates a massive influx of leveraged positions and reflects growing speculative appetite in the market. Historically, rising open interest in tandem with rising price signals confidence and trend strength, but it also increases the risk of a long squeeze if the market turns.

What’s notable, however, is that despite the elevated OI, funding rates remain at relatively moderate levels. This suggests that the majority of traders are not excessively over-leveraged, and we are not yet seeing the kind of euphoria typically associated with major tops.

It gives Ethereum more room to push higher without the immediate threat of a sharp deleveraging event. For now, positioning remains optimistic but not overheated, keeping the path open for a potential breakout above $4,100.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

Trump’s EU Trade Deal Sparks Crypto Surge: BTC Nears $120K, BNB Breaks ATH

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Just a few weeks after announcing new 30% tariffs against the European Union and Mexico, US President Donald Trump sat down with the former’s leader to discuss deal terms.

The meeting between Ursula von der Leyen and Trump in Turnberry, Scotland, appeared to be productive, as both parties said they reached a framework for a trade deal.

According to details shared by CNN, the EU has agreed to purchase $750 billion worth of energy from the US, as well as invest an additional $600 billion.

The initial 30% tariffs on almost all goods, aside from steel and aluminum, which will be set at 50%, were announced two weeks ago and were supposed to be enforced starting on August 1.

Although the EU will invest the aforementioned billions in different US-related initiatives, Trump said he could not lower the tariffs any further than a 15% across-the-board taxation.

Tariff news typically impacts the cryptocurrency market, although the effects have diminished in recent months. Back in April, the entire market tumbled as Trump announced tariffs against essentially all other countries.

Now, though, any new threats or announcements lead to less volatility. Still, a few digital assets began to chart gains after the news of the new deal was released.

BNB is among the top performers in the past few hours, which resulted in a price pump to a new all-time high of over $825 minutes ago. BNB has reclaimed its spot as the fifth-largest cryptocurrency from SOL.

BTC has also risen slightly and now trades above $119,000. ETH is up by over 3% on a daily scale and sits close to $3,850.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView
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Here’s Why Base Is Crushing Other Ethereum Layer 2s in Revenue

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Base, the Coinbase-incubated Ethereum Layer 2 network, has emerged as the most profitable rollup in the ecosystem, as it generated an average of $185,291 in daily revenue over the past six months.

With the latest figure, Base has far outpaced Arbitrum’s $55,025 and the combined $46,742 of 14 other top Layer 2s.

Base Captures Majority of L2 Market Share

In its latest analysis, Galaxy Digital explained that Base’s lead is supported by its EIP-1559-inspired fee model, which enables “dynamic” auction-based priority fee collection rather than strict first-come-first-served (FCFS) ordering.

The sequencer prioritizes transactions based on the highest priority fee per unit of gas and allows users to pay premiums for urgent execution. This enables Base to monetize block space demand efficiently.

Ethereum’s Pectra upgrade, which reduced Layer 1 posting costs via blob-enabled data submission, has further improved Base’s efficiency in monetizing block space while maintaining low transaction fees.

While Arbitrum introduced Timeboost in April 2025 to enable slot-bidding for express execution, it remains a predictive, fixed-rate system that is less reactive than Base’s per-transaction bidding. This makes the former less effective at capturing sudden spikes in user demand.

Over the past six months, priority fees alone have averaged $156,138 per day for Base. The chain accounted for about 86% of its daily revenue. Transactions occupying the top slot of each block contributed 30%-45% of daily revenue year-to-date in 2025, while the top 10 slots have accounted for between 50%-80% of daily revenue over the same period.

Meanwhile, “Flashblocks,” which was implemented on the Layer 2 network on July 16, introduced sub-block confirmations that allow high-priority transactions to land in lower slots while still receiving near-instant execution. This has resulted in a more even distribution of priority fees across block slots without reducing overall fee generation. Such a system in place has helped Base maintain strong revenue capture despite changes in slot allocation.

Base’s Revenue Engine

It is important to note that Base’s dominance in decentralized exchange (DEX) activity has been a major driver of its revenue. The network has consistently captured 50%-65% of Layer 2 DEX volume and holds the highest DEX TVL among Layer 2s, excluding perpetual DEX platforms.

Historically, priority fees tied to DEX swaps contributed 50%-70% of daily fees paid to Base. However, this share has declined to around 34% in recent weeks and reflects increased base fees and growing non-DEX competition for block space across the network. Despite this dip, DEX swaps have been observed to be a primary contributor to Base’s fee generation, especially in time-sensitive trades and maximum extractable value (MEV) strategies.

Data also indicates that a small cohort of users dominates priority fee payments, with 250 addresses accounting for nearly 65% of all priority fees paid over the past year.

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