Ethereum continues to face challenges as it struggles to reclaim the $3,500 level, a critical threshold for reaching $4,000.
Deteriorating market conditions are compounding the altcoin’s woes, reducing the likelihood of a near-term recovery and leaving investors uncertain about the price trajectory.
Ethereum losses mount
Recent Ethereum network transactions have been dominated by losses rather than profits. Many investors panic by selling their holdings, especially short-term ones, in an attempt to capture gains or reinvest in a downturn. However, these actions often result in missed opportunities, thus worsening the economic downturn.
This behavior highlights the widespread lack of confidence among investors. The tendency to exit positions prematurely contributes to increased volatility, making it harder for Ethereum to regain its footing and stabilize above crucial support levels.
Ethereum’s liveness indicator is at a two-year high, signaling significant activity among long-term holders (LTH). This measure increases when LTHs liquidate their holdings, which is generally a bearish sign for price stability.
The continued rise in buoyancy despite falling prices indicates that LTHs are prioritizing profit-taking over supporting the recovery. Such behavior undermines market confidence and puts further pressure on the Ethereum price, which could lead to further declines.
ETH Price Prediction: Breaking Resistance
Ethereum is currently priced at $3,402, holding above the $3,327 support but failing to break the $3,524 resistance. This consolidation has persisted for almost two weeks, reflecting market uncertainty and the absence of strong bullish signals.
Given current conditions, Ethereum will likely continue to consolidate or experience a decline. A decline could push the altcoin to test the $3,000 level, thereby extending losses for investors and delaying any significant recovery.
Alternatively, turning $3,524 into support could invalidate the bearish outlook. Reaching this milestone would pave the way for Ethereum to reach $3,721, allowing the cryptocurrency to recoup its losses and restore the confidence of its holders.
Disclaimer
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