Ethereum has faced challenges in gaining significant upward momentum in recent days, despite robust investor interest.
The price of the altcoin leader is influenced by two conflicting forces: substantial accumulation from both retail and institutional investors, and ongoing selling pressure from long-term holders. This opposition has resulted in ETH remaining within a narrow trading range.
Ethereum Exchange Supply Decreases
Ethereum’s supply on exchanges has consistently diminished over the past few months, now reaching a nine-year low. This indicates that investors are withdrawing tokens from centralized exchanges, typically associated with long-term accumulation rather than short-term trading.
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In the last month alone, over 2.7 million ETH, worth more than $11.3 billion, has been purchased by investors. This surge in buying reflects a strong belief in Ethereum’s long-term prospects, despite uncertain short-term price movements.
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Despite this positive accumulation, Ethereum’s Liveliness metric has been on the rise. Liveliness indicates the actions of long-term holders (LTHs), and an increase generally implies that these investors are selling instead of accumulating.
This selling activity from LTHs counteracts the bullish momentum generated by fresh inflows. Consequently, Ethereum finds itself in a tug-of-war between two market forces. This impasse is restricting significant price movements, leaving ETH susceptible to sideways trading until one side prevails.
ETH Price Is Susceptible to Correction
Ethereum is currently priced at $4,176, maintaining a position just above the crucial $4,074 support level. The immediate resistance is identified at $4,222, which ETH must surpass to pursue further recovery.
Considering the mixed signals, ETH is expected to stay consolidated within a broader range between $4,000 and $4,500. This has persisted for several weeks as bullish and bearish pressures find equilibrium.
However, if selling from long-term holders continues to exert pressure, Ethereum’s price could decline further. A breach below the $4,027 support would make ETH susceptible to a drop towards $3,910, invalidating the bullish outlook.
