Bitcoin (BTC-USD) was trading flat just above the $118,000 (£88,165) mark on Thursday, easing back after hitting a fresh all-time high of over $122,800 on Tuesday. The world’s largest cryptocurrency cooled as traders began to lock in profits, especially among short-term holders sitting on sizeable unrealised gains.

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On-chain data from Glassnode reveals early signs of profit-taking, with the Short-Term Holder Relative Unrealised Profit metric rising to 15.4%.

“Short-term holders are now sitting on significant unrealised profits,” pushing indicators “towards overheated territory”, Glassnode said.

Historically, such levels “often mark the beginning of top formation.”

Despite the pause in bitcoin’s momentum, ether (ETH-USD) rallyied more than 8% on Thursday, reaching a session high of $3,422, its strongest level in months.

The cryptocurrency is now eyeing the $3,500 mark, boosted by institutional optimism and renewed interest in Ethereum-centric infrastructure.

The rally comes amid news that tech billionaire Peter Thiel has taken a significant stake in BitMine, a firm with an Ethereum-centered treasury strategy. The move has been interpreted by analysts as a bullish signal for ether’s broader role in institutional portfolios.

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Bitget Wallet chief marketing officer Jamie Elkaleh said ether’s performance goes beyond short-term price action. “Ethereum’s current breakout reflects more than just bullish momentum, it signals a shift in how institutions value digital assets,” he said.

“While bitcoin remains the reserve asset, ether is emerging as the yield-generating infrastructure play. With staking yields hovering around 4–6% and token supply now deflationary post-EIP-1559, ETH offers both passive income and long-term appreciation.”

He added that Ethereum’s upcoming Pectra upgrade enhances its scalability and staking efficiency, reinforcing its role as the core infrastructure layer of Web3, powering decentralised finance (DeFi) and NFTs.

“Institutional flows confirm this shift. BlackRock’s (BLK) accumulation of ether is not just about price upside, it’s a strategic position in what many see as the backbone of future onchain finance. ETFs make ether easier to access within traditional portfolios, positioning it as both a technology bet and a financial instrument,” he said.

Still, Elkaleh cautioned that risks remain. “Regulatory uncertainty, especially around ETH’s security classification, could challenge growth, while competition from faster chains like Solana or Layer 2s could fragment network dominance,” he said.