Ethereum (ETH) is still struggling to break through the $4,000 barrier following several unsuccessful recovery attempts. Even with the overall market showing stability, the second-largest cryptocurrency has difficulty turning this crucial psychological level into support.
The persistent selling pressure from long-term holders (LTHs) remains a significant challenge, hindering Ethereum’s ability to regain upward momentum.
Ethereum Holders Are Selling
Recent exchange net position data indicates a significant change in trader behavior over the last 10 days. Outflows from exchanges, often seen as a sign of accumulation, have sharply declined. This slowdown suggests that investors are hesitating to purchase, reflecting uncertainty regarding Ethereum’s short-term prospects as the market assesses recent price fluctuations.
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As outflows decrease, inflows are increasing, signaling that more ETH is moving onto exchanges for potential selling. This transition often occurs before heightened bearish activity as traders seek to secure profits or minimize losses.
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Ethereum’s on-chain data indicates a decline in macro momentum. The Age Consumed metric—an indicator of previously dormant coins being moved—saw a notable spike in the last 24 hours. This surge represents the third-largest movement in over three months, implying that inactive long-term holders are starting to sell their coins.
Such an increase in Age Consumed typically points to a wave of profit-taking or loss aversion. As LTHs reintroduce their holdings into circulation, it reflects growing impatience with stagnant pricing.
ETH Price Can’t Flip This Resistance
At press time, Ethereum’s price is $3,846, slipping below the $3,872 support level. The leading altcoin has been trapped below $4,000 for almost a week, indicating waning momentum and tightening volatility in the wider crypto market.
With the ongoing selling pressure and weak inflows, Ethereum’s price may dip further toward the $3,742 support zone. If this level fails to hold, a deeper correction could ensue, pushing ETH down to $3,489, which would solidify the current bearish sentiment.
However, if Ethereum holders reduce their selling activity and demand picks up, ETH could bounce back above $4,000. A decisive breach of this resistance might propel prices toward $4,221, signaling renewed optimism and disproving the current bearish outlook.
