Failed breakouts have marked Ethereum’s price action this month, preventing the altcoin king from rallying decisively.
A noticeable shift in investor behavior over the past week has compounded this hesitation, making it harder for Ethereum to gain upward momentum.
Ethereum Faces Selling By Investors
Ethereum is currently facing a significant supply zone of 1.67 million ETH, valued at over $4.4 billion. This supply was acquired between $2,635 and $2,712, creating a formidable resistance level. Investors holding this volume are likely to sell and secure profits, exerting selling pressure and limiting Ethereum’s ability to rise.
This large supply zone acts as a barrier, discouraging new buyers and triggering profit-taking among existing holders. The presence of such a substantial supply near current prices dampens bullish hopes and increases uncertainty about Ethereum’s short-term recovery.
Transfer data shows a spike in supply moving to exchanges, indicating increased selling pressure. These spikes, the first significant ones recorded this month, indicate that sellers are beginning to act. Ethereum’s failure to break above $2,700, even as Bitcoin reached a new all-time high, is hurting the conviction among ETH holders.
This growing impatience among investors is causing hesitation and reducing buying interest. The combination of increased selling and stagnant price action points to a weakening momentum, challenging Ethereum’s ability to capitalize on Bitcoin’s bullish trend.
ETH Price Drop Fear Strengthens
Ethereum is currently trading at $2,641, struggling to breach the $2,663 resistance. This marks the third unsuccessful attempt since the start of the month, primarily due to the heavy supply and selling pressure described above.
On the support side, Ethereum is holding firm above $2,496. Therefore, the price is likely to consolidate around this support, gradually building strength for another attempt at overcoming the $2,663 resistance. Moreover, stability at this level is critical for future gains.
On the other hand, if market conditions improve and investors refrain from selling, Ethereum could push past the $2,663 resistance. Achieving this breakout would open the door to a rise toward $2,814, invalidating the current bearish thesis and signaling renewed optimism for the altcoin’s trajectory.
Disclaimer
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 Conditions, Privacy Policy, and Disclaimers have been updated.
