Ethereum Bears Reappear: Is ETH Price Inevitable Below $2,344?

Ethereum (ETH) is experiencing a sideways phase, with prices unable to surge significantly. Currently, ETH is trading around $2,476, and has not been able to break through important resistance levels.

The situation is becoming worse due to increasing investor impatience, especially from large ETH holders, who are choosing to sell rather than hold.

Ethereum Sales Increasing

The net position change of Ethereum on exchanges shows that ETH is beginning to flow back into exchanges, which could be a bearish signal. Over the past five days, approximately 350,000 ETH, valued at over $870 million, has been sold by investors. This increase in selling pressure indicates declining confidence among ETH holders.

The increased selling, especially from large holders, reflects pessimism about Ethereum's short-term prospects. As ETH's price fails to show significant recovery, these key holders may be acting on the belief that the altcoin's price is unlikely to surge strongly.

Ethereum's macro dynamics are also affected by long-term holders' (LTHs) behavior. The Coin Days Destroyed (CDD) indicator shows that LTHs have intensified selling activities recently. Consecutive increases in CDD suggest that LTHs, who typically form an asset's backbone, are moving their assets as optimism wanes.

Selling pressure from LTHs could exacerbate Ethereum's price decline, making it difficult for the altcoin to maintain upward momentum. As LTHs continue to reduce their positions, Ethereum may struggle to find stability, increasing the likelihood of further price drops. If this trend continues, Ethereum could face a prolonged stagnant period or even a significant decline.

ETH Price Holding Steady

Ethereum is currently trading at $2,485, holding above the local support level of $2,476. With current market uncertainty and increasing selling pressure, ETH's performance is likely to be weak in the short term. Broader market signals remain uncertain, contributing to the lack of clear direction for Ethereum.

Current market conditions and increasing selling pressure suggest Ethereum might slip below the $2,344 support level. If this occurs, ETH could further decline to $2,205, extending losses for investors and indicating a potential continuation of the downward trend.

However, if Ethereum can bounce back from the $2,476 support level and selling pressure decreases, ETH might see a recovery. If the price holds and market sentiment changes, Ethereum could rise to $2,606 or even $2,681. This would invalidate the bearish outlook and potentially restore confidence in Ethereum's price, leading to a potential price surge.