Ethereum (ETH) continues to show a sideways trend and is unable to see a sharp price increase. The king of altcoins, currently trading at around $2,476, has not broken through major resistance levels.
The situation is worsening due to a lack of patience among investors, especially major ETH holders, who are choosing to sell rather than hold.
Increase in Ethereum Sales
The exchange net position change of Ethereum indicates that ETH is starting to flow back into exchanges, which could be a bearish signal. Over the past 5 days, approximately 350,000 ETH worth over $870 million has been sold by investors. This increase in selling pressure suggests that ETH holders' confidence is weakening.
Particularly, the increased selling by large holders reflects a decrease in optimism about Ethereum's short-term outlook. As ETH's price has not shown significant recovery, these major holders may be acting on the belief that the altcoin will not achieve substantial gains.
Ethereum's macro momentum is further influenced by long-term holder (LTH) behavior. The Coin Days Destroyed (CDD) indicator shows that LTHs have recently increased their selling activity. The consecutive surge in CDD suggests that LTHs, who play a pivotal role in the asset, are moving their holdings as optimism decreases.
The selling pressure from LTHs could exacerbate Ethereum's price decline and make it difficult for the altcoin to maintain upward momentum. If LTHs continue to reduce their positions, Ethereum will find it challenging to find stability, and the possibility of further price drops increases. If this trend continues, Ethereum may face a prolonged period of stagnation or a sharp decline.
ETH Price Maintained
Ethereum is currently trading at $2,485, slightly above the local support level of $2,476. Given the current market uncertainty and increasing selling pressure, ETH is likely to show poor performance in the short term. The broader market signals remain unclear, making it difficult to determine Ethereum's clear direction.
The current market conditions and increasing selling pressure suggest that Ethereum could slip below the support level of $2,344. If this occurs, ETH could drop further to $2,205, which would expand investor losses and indicate the potential continuation of the downward trend.
However, if Ethereum rebounds from the $2,476 support and selling pressure decreases, ETH could rally. If the price stabilizes and market sentiment shifts, Ethereum could rise to $2,606 or even $2,681. This could invalidate the bearish outlook and restore confidence in Ethereum's price, potentially leading to a rally.
