Ethereum’s price is once again trying to break through the long-standing $3,000 barrier, but its efforts have stalled. After briefly rising, ETH moved back toward this support range, indicating that the market remains fragmented.
Although bullish momentum is slowly returning, investor impatience could weigh on the recovery unless a clear direction emerges soon.
Sponsored Sponsored
Ethereum investors may be able to sell ETH
The MVRV long/short differential is approaching the neutral line, indicating that the profit advantage may shift between long-term and short-term holders. This indicator tracks whether long-term holders (LTH) or short-term holders (STH) realize more profits. In the case of Ethereum, a drop below the neutral line means that STH holds most of the unrealized gains.
This change is important because STH has historically been sold off at the first sign of weakness. If they start taking profits near $3,000, ETH could face fresh selling pressure. This action has often delayed previous recovery attempts and left sentiment vulnerable despite widespread bullish signals.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The squeeze momentum indicator adds further complexity. ETH is currently experiencing a squeeze build-up that occurs when volatility contracts and momentum is compressed.
Sponsored Sponsored
This is usually done before a move in a strong direction. The histogram shows bullish momentum increasing, suggesting that prices could accelerate once the tightening is lifted.
If the bullish momentum continues to build during this period, ETH could benefit from an upward expansion in volatility. This setup was made prior to the early cycle rally, but confirmation depends on market participation and whether buyers intervene at $3,000.
ETH price may fall again
Ethereum is trading at $3,045 and remains above the key support level of $3,000. ETH has been trading tightly around this zone for the past few days, suggesting some indecision among traders as market cues change.
Mixed signals suggest that ETH may continue to move sideways near $3,000 in the short term. A breakdown caused by STH profit taking or widespread market skepticism could push Ethereum towards $2,762 before stabilizing.
However, if the bullish momentum strengthens along with a favorable macro environment, ETH could rise above $3,131 and target $3,287. A full breakout above these levels would invalidate the bearish outlook and set the stage for a broader recovery phase.
