Ethereum (ETH) price remains below a key resistance level that could open the door for a rally towards $3,000.
However, hesitant investor sentiment is delaying the recovery, preventing Ethereum from gaining the momentum it needs to rally.
Uncertain Ethereum Investors
The Ethereum price may continue to trade sideways or show a slow recovery due to investor uncertainty. The Net Unrealized Profit/Loss (NUPL) indicator is nearing fear territory, reflecting a recent significant decline in investor optimism.
The near entry into fear territory signals growing caution among market participants, who are increasingly concerned about the possibility of a price reversal. The Net Unrealized Profit/Loss (NUPL) indicator, which measures investor sentiment, is moving into fear territory, indicating weakening confidence in Ethereum's short-term outlook.
The closer this indicator gets to negative territory, the higher the likelihood of further declines, reflecting growing investor anxiety that could hinder price recovery.
Read more: How to Invest in Ethereum ETFs
In addition to NUPL , Ethereum's funding rate has shown signs of instability over the past two weeks.
The funding rate fluctuates between positive and negative, reflecting traders' uncertainty. This volatility in the funding rate reflects a lack of consistent confidence in Ethereum's future performance.
The decline in the funding rate and the near slippage of the NUPL indicator into fear territory indicate growing market anxiety.
Ethereum Price Prediction: Adjusted Revision
The price of Ethereum fell 30% in late July, and has only recovered about a third of that loss so far. The altcoin leader, trapped below the $2,681 resistance level, is currently trading at $2,651.
The above-mentioned signals indicate that Ethereum may struggle to break through its current resistance level and maintain its closing price. Altcoins have faced similar challenges before, with past failed attempts leading to periods of price bottoming.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
However, a close above $2,681 could trigger a rally. This could push Ethereum to $2,930, and a break above this level would invalidate bearish forecasts, potentially pushing the price towards $3,000.
