- Ethereum’s bearish pressure strengthened following recent selling activity among long- and short-term holders.
- The whales have been resisting selling pressure after increasing their holdings by 410K ETH.
- ETH could fall towards the psychological level of $3,000 if it breaks the support of $3,250.
Ethereum (ETH) rose 4% on Monday despite increased selling pressure among short- and long-term holders over the past two days. If whales fail to maintain their recent attitude of buying dips, ETH risks falling below $3,000.
Ethereum Investors Increase Selling Pressure, Whales Buy the Dip
Ethereum has witnessed a rise in bearish sentiment after experiencing double-digit losses last week.
ETH’s weighted sentiment, which measures an asset’s social volume and its overall sentiment, has remained below its neutral level, indicating high negative sentiment.
Weighted Ethereum Sentiment. Source: Sentiment
The bearish sentiment is also evident in the network’s realized profit and loss metric, which shows that most investors have been selling their assets to book profits and losses in the last 24 hours. In particular, investors have made more than $340 million in profits and $30 million in losses.
Profits/losses obtained from the Ethereum network. Source: Sentiment
The idle circulation metric reveals that the recent selling activity is coming from both long and short-term holders, as evidenced by the spikes in the chart below. This indicates that the downtrend is gradually gaining strength.
Inactive Ethereum circulation. Source: Sentiment
Despite the selling activity, the Ethereum exchange reserve has maintained a downward trend and investors have pulled out.
Most of these withdrawals came from whales holding between 100,000 and 1 million ETH. This class of whales ended a two-week steady selling activity after increasing their holdings by 410,000 ETH in the last two days. The move indicates confidence in a possible resumption of the uptrend after the holidays.
ETH Whale Holdings (100K to 1M ETH). Source: Sentiment
Meanwhile, US spot Ethereum ETFs managed to maintain their streak of weekly net inflows even after seeing outflows on Thursday and Friday. The products recorded net inflows of $62.7 million last week, extending their inflow streak to four consecutive weeks, according to data from Coinglass.
Ethereum Price Forecast: ETH Could Find Support at the Psychological $3,000 Level if It Falls Below $3,250
After extending its decline below the 50-day simple moving average (SMA), ETH remained within the $3,250 support and $3,423 resistance levels over the weekend as prices appear to stabilize due to the Christmas season.
ETH/USDT daily chart
The $3,250 level is crucial even as prices move range-bound. ETH could fall towards the psychological level of $3,000 if it breaks the support of $3,250.
The $3,000 target is obtained by measuring the height of a double top pattern that ETH recorded in the first two weeks of December, up to its neckline support level. The 100-day and 200-day SMAs could strengthen the $3,000 psychological level as a key support zone.
However, a fresh break of the $3,000 support level will validate a round-up pattern that could send ETH towards the psychological $2,000 level. The key support level of $2,817 could help cushion such a decline.
On the way up, ETH has to reclaim the $3,550 support level with a large volume move to resume its uptrend.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) indicators are below their neutral levels, indicating that the market is leaning towards bearish momentum.
A daily candle close above $4,093 will invalidate the bearish thesis.
