Are Ethereum (ETH) Holders Losing Confidence? Selling Pressure Halting $ETH Price Recovery
Ethereum’s price has seen a significant drop, falling from nearly $4,000 to below $3,500, leading many holders to move their ETH to exchanges in an attempt to minimize losses.
As Ethereum's price drops, ETH holders are becoming increasingly skeptical and are opting to sell their holdings to cut losses. The network’s realized profit and loss indicator shows a surge in profit-taking over the last few days. This recent spike is the largest in three months, indicating declining optimism for further profits.
Of particular concern is the selling by long-term holders, who typically hold assets for over a year. Their decision to sell signals a lack of confidence in recovery, which adds to the bearish sentiment and further drives down the price.
The Age Consumed indicator, which tracks the movement of older coins, shows a spike, indicating increased activity among long-term holders. This movement reflects a growing uncertainty about the future recovery of Ethereum’s price.
A spike in this indicator is typically not a good sign for Ethereum, as it shows that even long-term holders are losing confidence in a price rebound.
Currently, Ethereum’s price is trading at $3,578 and faces resistance at the 50% Fibonacci Retracement level. With growing bearish sentiment among investors, this resistance is likely to strengthen, potentially pushing ETH down to $3,400, just above the 38.2% Fibonacci level, which has previously served as support.
Despite the bearish outlook, there is still a possibility for recovery. If Ethereum can break through the 50% Fibonacci level at $3,582 and turn it into support, the bearish trend could be invalidated. This breakthrough would allow Ethereum’s price to recover losses and possibly climb back to $3,800.
ETH’s recent price drop has shaken investor confidence, leading to increased selling and stalling price recovery. While the short-term outlook remains bearish, reclaiming key support levels could pave the way for a potential rebound.
