Ethereum (ETH) has experienced continuous lateral momentum, and prices have struggled to make rapid profits. Altcoin King, which currently trades around $2,476, has failed to break through its major resistance levels.
This situation is exacerbated by increasing impatience among investors from major ETH owners who are particularly choosing to sell rather than hold.
Ethereum sales rise
Changes to the Exchange Net Position in Ethereum indicate that ETH is beginning to return to the exchange. This could be a bearish signal. Over the past five days, approximately 350,000 ETH has been sold by investors, exceeding $870 million. This increased sales pressure suggests that convictions between ETH owners are declining.
In particular, the increase in sales by large owners reflects a decline in optimism about Ethereum’s short-term outlook. As ETH prices cannot show a significant recovery, these key owners may be acting on the belief that Altcoin prices are unlikely to make a significant profit.
Changes to Ethereum Exchange net position. Source: GlassNode
Ethereum macro momentum is further influenced by the actions of long-term holders (LTHS). The Day of Destroyed Coins (CDD) metric shows that LTH has been increasing sales activity recently. The successive spikes of CDDs suggest that LTHS, which normally serves as the backbone of assets, drives holdings as optimism decreases.
Sales pressure from LTHS could exacerbate Ethereum’s price drop, making it difficult for Altcoin to maintain its upward momentum. As LTHS continues to reduce positions, Ethereum may struggle to find stability, increasing the chances of further price drops. If this trend continues, Ethereum could face longer-term stagnation or abrupt decline.
Changes to Ethereum Exchange net position. Source: GlassNode
ETH prices are retained
Ethereum is currently trading at $2,485, slightly above the $2,476 local support level. Given current market uncertainty and increased sales pressure, ETH prices can experience inactive performance in the short term. The wider market queue remains uncertain, contributing to Ethereum’s lack of clear direction.
Current market conditions and increased sales pressure suggest that Ethereum could fall below the $2,344 support level. If this occurs, ETH will further decline to $2,205, extending investor losses, indicating a potential continuation of the bearish trend.
Ethereum price analysis. Source: TradingView
However, if Ethereum bounces back $2,476 in support and sales pressure drops, ETH may see a rebound. If prices stabilize and market sentiment changes, Ethereum could rise to $2,606, or even $2,681. This could override the bearish outlook, regain confidence in Ethereum prices, leading to potential gatherings.
