Ethereum price is facing a downward trend due to significant investor group actions. These investors have pushed the altcoin price lower than what optimistic individual investors could. Ethereum’s price is currently declining, influenced by the broader market downturn and a tepid response to spot Ethereum ETF launches.
What is Happening with Ethereum?
The situation is further complicated by medium and long-term holders choosing to sell for profit. These investors typically help maintain price stability even in bearish markets. However, their selling decisions can halt the most promising bullish trends. Approximately 740,000 Ethereum worth about $2.4 billion were sold in the last seven days. This supply was last active between six months and two years ago.
This development worsened the decline but had little impact on individual investors. According to the Net Unrealized Profit/Loss (NUPL) indicator, these investors remain optimistic about a potential price increase. The indicator is currently in the Optimism zone, signaling that Ethereum holders expect gains in upcoming trading sessions. Whether this optimism is strong enough to lift Ethereum’s price remains uncertain.
Ethereum Chart Analysis
Ethereum price is holding firmly above the 23.6% Fibonacci Retracement line, known as the bear market support base. This support prevents further declines but skepticism also hinders a rise. Ethereum is stuck below the 38.2% Fibonacci line at $3,304 and is attempting a breakout. Beyond this, a rise might struggle to surpass the 50% Fib line at $3,455.
However, if the selling and broader market downturn persist, a drop to the 23.6% Fib line and below $3,118 is possible, invalidating the neutral-bullish thesis.
