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Ethereum (ETH) Holders Sell, Stalling Price Recovery  

2 mins
Updated by Bary Rahma
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In Brief

  • Ethereum’s price has dropped by 10% in the last ten days with an attempt at recovery active.
  • Selling has surged on the network, with profit reaching a three-month high over the past week.
  • Long-term hodlers are actively distributing assets, which is evident in the uptick Age Consumed.
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Ethereum’s (ETH) price has disappointed investors, falling from nearly $4,000 to below $3,500.

This has led to many holders moving their ETH to the exchanges to minimize their losses.

Ethereum Investors Lose Confidence

Ethereum’s price drop is causing ETH holders to become increasingly skeptical, with many moving to sell their holdings to offset their losses.

Looking at the network realized profit and loss indicator, profit-taking has surged over the last few days. The spike in the metric is the largest in three months, with the last such selling observed back in March when ETH was rallying. But this is being done due to the declining optimism pertaining to further profits.

Ethereum Network Realized Profit/Loss.
Ethereum Network Realized Profit/Loss. Source: Santiment

The ones selling on the network that created the most concern were the long-term holders. These investors tend to hold on to their assets for more than one year. Their HODLing during declines exhibits conviction and confidence in recovery. On the other hand, their selling leads to bearishness rising rapidly, causing a further drop in price.

This is evident in the Age Consumed of ETH, as a spike shows increased supply movement within addresses. This tends to exhibit a rising decline in conviction among investors.

In the case of Ethereum, this indicator spiking is not a good sign for the crypto asset. It shows long-term holders are uncertain of recovery in the future.

Read More: What Is the Ethereum Cancun-Deneb (Dencun) Upgrade?

Ethereum Age Consumed.
Ethereum Age Consumed. Source: Santiment

ETH Price Prediction: Another Dip

Ethereum’s price, trading at $3,578, faces resistance from the 50% Fibonacci Retracement level. With investors’ increasing bearishness, this resistance could get stronger, forcing ETH to fail the breach.

The likely decline will stop at $3,400, just above the 38.2% Fib level, which has been tested as support multiple times in the past.

Read More: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum Price Analysis.
Ethereum Price Analysis. Source: TradingView

On the other hand, a successful breach of the 50% Fib line marked at $3,582 and flipping it into support will invalidate the bearish thesis. This will enable Ethereum’s price to reclaim the losses and climb back to $3,800;

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...