📉 Investors Push Ethereum Prices Down
Ethereum’s price is currently on a downward trajectory due to significant actions by a large group of investors. These investors have managed to push the altcoin’s price lower, overshadowing the efforts of optimistic individual investors. The broader market decline and lackluster response to spot Ethereum ETF launches have also contributed to this negative trend.
🔸 Why Are Investors Selling Ethereum?
The situation is further complicated by medium- and long-term holders opting to sell for profit. Typically, these investors help stabilize prices even in bearish markets, but their recent selling decisions have interrupted bullish trends. In the past week alone, around 740,000 Ethereum, worth approximately $2.4 billion, were sold. These tokens were last active between six months and two years ago.
This surge in selling has exacerbated the price decline but has had minimal impact on individual investors. According to the Net Unrealized Profit/Loss (NUPL) indicator, individual investors remain optimistic about a potential price increase. The NUPL indicator currently sits in the Optimism zone, suggesting that Ethereum holders expect gains in the near future. However, it remains uncertain if this optimism will be enough to reverse the current downward trend.
🔸 Can Chart Indicators Predict a Rebound?
Ethereum’s price is currently holding above the 23.6% Fibonacci Retracement line, acting as a support base in this bear market. While this support line prevents further declines, skepticism is also limiting any potential rise. Ethereum is currently struggling to break past the 38.2% Fibonacci level at $3,304, and even if it succeeds, it may find it challenging to surpass the 50% Fibonacci level at $3,455.
However, if the selling trend continues and the broader market downturn persists, a drop to the 23.6% Fibonacci line and below $3,118 is possible. This would invalidate the neutral-to-bullish outlook currently held by some investors.
