Ethereum Price Faces Pivotal Moment: Is a Deeper Decline Inevitable?
As one of the dominant cryptocurrencies, Ethereum (ETH) has been showing worrying signs of a bearish trend according to the latest market analysis. Despite a recent short-term bounce, key indicators and long-term holder behavior suggest that ETH faces significant downside pressure. Here’s a breakdown of what this means for the market and investors.
Underlying Momentum Weakens
Over the past week, Ethereum’s price has attempted to recover, rising approximately 10%, yet the broader trend shows a stark decline of 23% over the last month. Technical analysis highlights a hidden bearish divergence forming on Ethereum’s price chart. This occurs when the price experiences higher lows, but momentum indicators like the Relative Strength Index (RSI) point to a higher high during a downtrend, signaling a fragile rebound.
Increased Selling from Long-Term Holders
The on-chain data paints a more daunting picture. The Hodler Net Position Change, which tracks activity from long-term holders, has been showing negative readings throughout the month. This indicates that seasoned holders, who generally stabilize the market, are offloading their ETH at unprecedented rates.
Between November 22 and 28, the weekly ETH outflows from long-term wallets skyrocketed by 191%, from 334,600 ETH to approximately 973,000 ETH. The peak came closer to November 26, with outflows nearing 1.1 million ETH in just a day. This aggressive selling pressure from typically resilient investors raises major concerns about sustained price retention at current levels.
Crucial Support Levels to Watch
Ethereum’s price currently trades slightly above the $3,016 support level. This critical floor, aligned with the 0.382 Fibonacci retracement level, represents a key battleground for buyers and sellers. If the price drops below this threshold, Ethereum risks sliding to $2,864, or even deeper toward the $2,619 support zone, further increasing bearish sentiment.
For Ethereum to shift into a more bullish scenario, it must break above $3,138. Such a move would signify a break from the descending structure and provide short-term relief. However, without strong buying pressure, these bearish patterns could continue further downward.
Stay Ahead of Market Trends
Investors should closely monitor Ethereum’s price movement while considering the broader market context. Notably, traders can consider accelerating their market strategy using price analysis tools like the TradingView Premium Plan, providing advanced technical charts and key indicators that keep you informed in real time.
Conclusion: Exercise Caution
Ethereum’s current price structure and increased selling from long-term holders reveal a precarious outlook. While it remains possible for the price to rebound, bearish momentum dominates unless clear buying support enters the market. These developments highlight the importance of staying vigilant, performing due diligence, and utilizing professional tools to manage crypto investments effectively.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always consult a professional before making financial decisions.
