Ethereum (ETH) price has struggled to maintain sustained growth momentum in recent weeks. Due to a series of negative developments, the altcoin has been hovering around $2,300.
Despite attempts to climb higher, selling pressure has weighed on ETH, making the path towards $3,000 hazy.
Holders prepare to sell ETH
Ethereum has seen its largest bout of selling pressure in six months. In the past two weeks alone, investors have moved over 255,869 ETH, worth over $596 million, to exchanges. This surge in selling pressure mirrors the intense profit-taking we saw in March, creating a challenging environment for Ethereum’s price recovery.
Such selling pressure indicates a decline in investor confidence, making it even more difficult for ETH to gain upside momentum. With market sentiment still negative, Ethereum’s recovery to its previous highs could be challenging.
Furthermore, Ethereum's macro trend is closely tied to its correlation with Bitcoin. Typically, ETH's price tends to fall when its correlation with Bitcoin weakens. Currently, the correlation between ETH and BTC has dropped to 0.54.
The decline in correlation with Bitcoin could lead to increased volatility for Ethereum, leaving it vulnerable to downside price movements. As the market awaits clearer signals, this weakening correlation adds to the uncertainty surrounding ETH’s short-term price action.
Ethereum Price Prediction: Bearish Trend
Ethereum is currently trading at $2,334, just below the key resistance level of $2,344. With the ongoing sell-off and weak market conditions, a move to $3,000 seems unlikely at this point.
Instead, if the selling pressure continues, ETH is likely to drop to $2,170. While a drop below this support level is unlikely, it is still a risk.
If the broader market sentiment turns positive, Ethereum could regain momentum and rally to $2,681. A break above this level would invalidate the bearish prediction, paving the way for a further rally to $2,930, potentially pushing ETH towards $3,000.
