Ethereum’s (ETH) market position is under scrutiny as both longstanding and new investors begin to sell, hinting at a possible downturn to the $3,000 threshold. Despite a modest price recovery earlier in the week, the broader sentiment is bearish, as evidenced by the extensive selling activity for profits and losses documented in the network metrics.
Amidst the sell-off, Ethereum whales have been quietly accumulating, adding over 410,000 ETH to their holdings—a glimmer of optimism that could prop up the market. Simultaneously, Ethereum’s diminishing exchange reserves suggest a declining inclination to sell among these key players, potentially easing some downward pressure.
Technical analysis reveals a pivotal support line at $3,250 for Ethereum, with a break below possibly prompting a slide to $3,000, a level supported by strong moving averages. Still, the crucial question remains whether this support can withstand the selling momentum.
Ethereum’s path to recovery is challenging, requiring a sustained push above $3,550 to quell the bearish sentiment. With technical indicators like the RSI and Stoch reflecting the current market hesitance, Ethereum’s price stability hangs in the balance, with the risk of falling to even lower support zones if the negative trend doesn’t let up.
