Ethereum’s price has recently encountered resistance in its attempt to reach the $3,000 threshold, facing challenges in establishing $2,700 as a reliable support level. The latest price developments showcased some unforeseen selling pressure that impeded further advancements, though this selling activity appears to be subsiding.
Now that resistance levels have been tested, ETH may experience renewed buying momentum, indicating a potentially brighter outlook in the ensuing weeks.
Ethereum Is Experiencing a Decrease in Selling Activity
Ethereum’s exchange net position change has been on a downward trend since the start of the month, which is a positive signal for ETH’s prospective rally. As this metric approaches the neutral line, it signifies that selling pressure is waning. Should it fall below neutral, it would suggest that buying is starting to outstrip selling, a bullish indicator that could assist Ethereum in regaining essential support levels.
A reduction in exchange positions frequently points to diminished selling pressure, as traders prefer to hold onto ETH rather than dispose of it. This shift in sentiment is advantageous for Ethereum’s price movement, as lower selling pressure can create opportunities for a price increase.
Read more: How to Invest in Ethereum ETFs?
Regarding macro momentum, Ethereum’s mid-term holders (MTHs)—addresses retaining ETH for a span of 1 to 12 months—have been significantly active. As ETH’s price dipped this week, these MTHs transferred around 700,000 ETH, amounting to over $1.7 billion.
This activity from mid-term holders signifies market uncertainty, as this group tends to react more to price changes. Their recent movements underscore worries about potential downsides, with substantial transfers indicating hesitance among investors regarding the short-term stability of ETH.
The surge in activity among mid-term holders introduces volatility, yet this is balanced by diminished movement from other investor segments, which are showing less activity.
ETH Price Forecast: Gains Not Foreseen
The current price of Ethereum, standing at $2,538, is attempting to reclaim the nearest support level at $2,546. Successfully reaching and maintaining this level is vital for Ethereum’s advance toward the resistance at $2,698, which could facilitate additional gains. With selling pressure easing, this target seems attainable.
Despite the upheaval among mid-term holders, overall indicators suggest a positive trajectory, as other investor groups remain stable. For Ethereum to move towards $3,000, it must establish $2,698 as a robust support level.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum has remained above a consistent uptrend line for the past two months, solidifying its bullish trend. Retaining this level will keep ETH on a favorable path, while a breach below this trend line might result in a decline to $2,344. Such a downturn would challenge the positive outlook, potentially leading to significant market uncertainty regarding the future price direction of Ethereum.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be regarded as financial or investment advice. BeInCrypto is dedicated to delivering accurate and impartial reporting, but market conditions may change unexpectedly. Always perform your due diligence and consult with a professional before making any financial choices. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been recently updated.
