Ethereum Loses 15%: $3,377, $4,000 Support Exceeded!
Ethereum has experienced a significant 15% loss in value over the past week, resulting in major losses for investors. Due to the decline, selling pressure has increased in the Ethereum market, and investors have preferred to hedge their profits during the volatility. If this trend continues, Ethereum’s decline could deepen.
Ethereum’s Losses Are Growing
With the recent price decline, Ethereum supply loss has increased rapidly. In one week, ETH supply increased by 7 million ETH, from 2.7 million ETH to 9.7 million ETH. The total value of these losses now stands at $23 billion, showing the magnitude of the losses. This significant increase in unrealized losses is the largest increase in the last five months and raises concerns about increasing selling pressure in the market.
During this period of increasing losses, investors are selling more assets instead of waiting for a recovery. If this selling trend continues, Ethereum’s downtrend will intensify and if market conditions do not improve, ETH may enter a prolonged decline phase. There are signs of weakness in Ethereum’s macro outlook. Profitable active addresses currently account for 28% of network participants, and historical data shows that when profitability exceeds 25%, profit-taking increases, leading to price declines.
Change in Investor Behavior
This high level of profitability suggests that more investors are likely to sell to secure their gains, adding to the current selling pressure. If this trend continues, Ethereum may struggle to maintain its current levels and face a sharper decline. Ethereum’s price has fallen 15% in the past week to $3,377. This is the second time in a month that ETH has failed to hold the $4,000 support level, reinforcing the downtrend.
$3,327 Support at Critical Level
Ethereum has become vulnerable to further corrections after failing to hold the $4,000 support level. If the current downtrend continues and selling pressure increases, the $3,327 support level could break. A drop below this level could push ETH price below $3,000 and signal a significant period of decline.
$3,524 Resistance and Possibility of Recovery
On the upside, Ethereum is facing a strong resistance at $3,524. A break of this resistance could prompt the price to rally towards $3,721, which could trigger a recovery. Such a rally could restore investor confidence, avert losses, and improve market sentiment.