Ethereum price has recently faced resistance on its way towards the $3,000 mark and is struggling to secure $2,700 as a solid support floor. Recent price action has created unexpected selling pressure that has prevented further upside, but this offload appears to be easing.
With resistance levels currently being tested, ETH could see some buying momentum again, suggesting a more favorable outlook in the coming weeks.
Ethereum sees slowdown in sales
Ethereum exchange net position changes have been trending downward since the beginning of the month, a positive sign for ETH’s potential upside. As the indicator inches closer to the neutral line, this change indicates that selling pressure is decreasing. A break below neutral means that the buys are starting to outweigh the sells, a bullish signal that could help Ethereum regain important support levels.
Reductions in currency positions often reflect reduced selling pressure as traders choose to hold ETH rather than offload it. This change in sentiment will benefit Ethereum’s price trajectory, as the reduction in sell-side pressure will create room for a surge.
Read more: How can I invest in Ethereum ETFs?
Changes in net positions on the Ethereum exchange. Source: Glassnode
From a macro momentum perspective, Ethereum intermediate holders (MTH), or addresses that have held ETH for 1-12 months, are particularly active. These MTHs moved around 700,000 ETH (worth over $1.7 billion) as ETH prices fell this week.
Such movements by medium-term holders indicate market uncertainty, and this cohort is often more sensitive to price fluctuations. Their recent activity highlights concerns about a potential downside, as large movements could indicate investor reluctance towards short-term stability for ETH.
Increased activity among medium-term holders leads to volatility, but this is offset by decreased movement in other investor cohorts, which have shown decreased activity.
Ethereum MTH supply. Source: Glassnode
ETH price prediction: No profit expected
Ethereum price is currently at $2,538, but it is trying to regain the nearby support at $2,546. Reaching and sustaining this level will be crucial for Ethereum to move towards the $2,698 resistance, potentially paving the way for further upside. This level could be within reach if selling pressure eases.
Despite fluctuations among medium-term holders, the overall indicators point to a positive outlook as other cohorts remain stable. To push towards $3,000, Ethereum needs to secure a strong support floor at $2,698.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum price analysis. Source: TradingView
Ethereum is trading above its two-month uptrend line, reinforcing its overall bullish trajectory. If ETH sustains this level, it will maintain a positive trajectory, but if it breaks below this trend line, it could fall to $2,344. Such a decline could cast doubt on the bullish outlook and create further market uncertainty over Ethereum’s future price direction.
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