Ethereum (ETH) price action has been attracting attention recently as the cryptocurrency struggles to break above the $3,721 resistance level.
This barrier remains a critical hurdle as the asset seeks to regain lost ground and approach its December 2024 high of $4,107. While some investors remain bullish, recent corrections have validated the cautious behavior of others.
Ethereum Investors Get Mixed Signals
The supply of Ethereum that lasted between one and three months has increased, reflecting growing resilience among investors. In the past week, holdings from this group have increased by 1.52 million ETH.
This trend suggests that despite recent price declines, investors are avoiding liquidating their positions, showing optimism about the potential recovery.
However, the overall sentiment remains divided. While some investors are showing patience, others continue to show uncertainty. The mixed behavior highlights Ethereum’s current struggles, as the market tries to find a balance between hope and caution.
Ethereum supply last moved between 1 and 3 months ago. Source: Glassnode
The Liveliness indicator reveals active liquidations among holders. This metric highlights that some investors are still selling, likely driven by concerns about prolonged consolidation or further corrections.
This selling pressure signals that broader market confidence has yet to fully return, even as some ETH holders adopt a bullish stance.
Despite this, Ethereum’s ability to hold above critical support levels reflects underlying strength. If liquidations subside, the altcoin could regain momentum, moving toward its next significant resistance point.
Liveliness do Ethereum. Fonte: Glassnode
Price prediction
Ethereum is currently trading at $3,336, down 9% this week after failing to break above the $3,721 resistance. This decline led ETH to test the $3,327 support level, which remains critical to avoid further losses. The mixed sentiment among investors has created a tug-of-war between recovery hopes and selling pressure.
Given these dynamics, Ethereum appears poised for consolidation between $3,524 and $3,327. This range has served as a critical zone in the past, providing stability during uncertain market phases.
Sustained consolidation could help ETH build the momentum needed for a breakout.
Ethereum Price Analysis. Source: TradingView
However, if Ethereum capitalizes on the bullish investor sentiment, it could reclaim $3,721 as support. Doing so would invalidate the bearish-neutral thesis and put ETH on track towards its recent high of $4,107. A successful rally could reignite market confidence, attracting more interest in the king of altcoins.
The article Ethereum (ETH) Faces Market Uncertainty – Analysis appeared first on BeInCrypto Brasil.
