Ethereum [ETH] has undergone a prolonged period of active selling pressure, with net trading volume indicating a sustained negative trend over the past few months.
This trend indicates aggressive seller dominance, which is typically associated with a decline in market confidence or a broader aversion to risk.
Despite this, the number of ETH holders continues to grow, raising questions about whether long-term investors are accumulating funds amid the sell-off or if a price reversal looms on the horizon.
Persistent selling pressure on Ethereum
Data from CryptoQuant indicates a prolonged phase of aggressive selling, with the net selling volume showing bright red values.
This means that sell orders outweigh buy orders, reflecting a bearish sentiment in the Ethereum market.
Historically, such a prolonged negative trading volume precedes major corrections or capitulations, which may lead to further declines if the trend persists.
Source: X
Looking at past cycles, it can be observed that ETH experienced similar phases of intense selling pressure, followed by a reversal when buying momentum re-emerged.
However, the current trend appears to be more prolonged, indicating that investor sentiment remains cautious despite the overall development of the cryptocurrency market.
ETH holders continue to grow
While the price of Ethereum is falling, the number of holders is steadily increasing.
Santiment data showed that the total number of ETH holders reached approximately 141.31 million, indicating steady growth despite the price decline.
This suggests that while short-term traders are closing their positions, long-term investors continue to see value in accumulating ETH at current levels.
Source: Santiment
One possible explanation for this divergence is that institutional investors and 'whales' are gradually acquiring Ethereum, while retail traders capitulate.
Such an accumulation model could pave the way for a potential recovery if selling pressure eases and market conditions improve overall.
Price forecast: Will ETH find support?
At the time of publication, Ethereum was trading at $1876, showing a steady decline over the past few weeks. Key support levels to watch are $1850, which has historically served as an important demand zone.
Source: TradingView
If selling pressure intensifies, Ethereum may test the $1750 level, which previously served as a strong accumulation zone.
Conversely, if ETH manages to stabilize and return to the $2000 mark, it could trigger a shift in sentiment.
The Aroon indicator, which measures trend strength, currently signals weakness, suggesting that ETH remains in a downtrend.
However, a breakthrough above the 50-day moving average [2365] would indicate a resumption of the bullish trend.
Conclusion
The Ethereum market remains under selling pressure, as evidenced by the persistent negative net trading volume.
However, the steady growth in the number of ETH holders indicates that some investors view the current price range as an opportunity to accumulate.
Despite the ongoing risks of price declines, a change in sentiment or easing selling pressure could contribute to ETH's recovery.
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