Ethereum‘s (ETH) price faces a downward trend due to significant investor actions. These actions have pulled the altcoin’s price lower than what optimistic retail investors could manage.
Current State of Ethereum Investors
Yesterday, during Donald Trump’s speech, Ethereum’s price also declined. This is seen as a reflection of the overall market downturn. Additionally, the uncertainty following the introduction of spot ETH ETFs, similar to the decline after spot Bitcoin ETFs on January 10, is believed to have caused the price drop.
Meanwhile, actions of medium and long-term investors, who consider selling their ETH for profit, complicate the situation. This group generally plays a crucial role in stabilizing prices regardless of market direction. However, their selling decisions can halt even the most promising upward trends.
A similar situation is thought to be occurring with ETH. Over the past seven days, 740,000 ETH worth $2.4 billion were sold.
These sales are believed to have a significant impact on the declines. However, their effect on individual investors appears to be minimal. The Net Unrealized Profit/Loss (NUPL) indicator shows that this group remains optimistic.
Reflecting this optimism, it wouldn’t be wrong to say that ETH investors expect a price rise in the coming days.
Nevertheless, investors and cryptocurrency followers remain cautious about whether this optimism will trigger a price increase.
What Will Be the Price of ETH?
Ethereum’s price remains strong above the critical support level of 23.6% Fibonacci retracement, which is thought to trigger a bear market. Maintaining this level prevents investors from approaching ETH with hesitation.
ETH, stuck below the 38.2 Fib line at $3,304, is trying to break above this level. A potential price movement beyond this level could result in the price rising above $3,455.
Conversely, if the price decline continues, movements below $3,118 could be observed.
