Ethereum has struggled to recover from its recent decline, with the altcoin king looking to regain momentum after falling below a major level. Although ETH has received strong support from long-term holders, fresh investments are still needed for recovery.
However, that inflow of new capital appears to be limited for now, creating uncertainty regarding Ethereum’s next move.
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Ethereum holders have mixed feelings
The HODLer Net Position Change indicator shows a stable slope, indicating improved confidence among long-term holders. This indicator measures the movement of ETH within LTH wallets, and any rise from the current negative zone suggests that outflows are slowing down. Historically, such changes often precede new accumulations.
As long-term holders sell less, the market stabilizes. Their confidence in Ethereum’s recovery strengthens the asset’s fundamentals even in volatile conditions.
If this trend continues, LTH could quickly move from holding to accumulation and provide meaningful support for ETH’s next rally.
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Although long-term holder sentiment has improved, overall macro momentum remains mixed. The number of new Ethereum addresses has remained flat, indicating low interest from potential new investors.
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This stagnation is concerning because new demand is a key element for sustained price recovery.
Without new market participants, there may not be enough inflows to push ETH towards the $3,000 level. Even with solid support from existing holders, a lack of external capital can delay or dampen meaningful upside.
ETH price needs to recover
Ethereum is trading at $2,814, just below the major resistance level. At this distance, ETH is 6.6% away from a $3,000 payback, which is a psychologically significant barrier for both traders and long-term investors.
For Ethereum to reach this standard, support from new investors is essential. If new demand remains weak, ETH could consolidate below $3,000 as existing capital may not be enough to fuel long-term upside. The king of altcoins needs broader participation to sustain the breakout.
If inflows improve and new investors re-engage, Ethereum could rally to $3,000 and attempt to convert that level into support. Success in reclaiming this zone could pave the way for more than $3,131. This would invalidate the bearish outlook and restore bullish momentum.
