Ethereum (ETH) continues to trade sideways after multiple failed attempts to break above the $4,000 mark. The second-largest cryptocurrency remains under pressure as a lack of investor support stalls recovery momentum.
Market uncertainty is worsening as long-term holders (LTH) appear to be looking to sell their positions.
Ethereum holders move to sell
On-chain data shows that Ethereum’s Coin Days Destroyed (CDD) indicator has risen sharply over the past 24 hours. This indicates that long-term holders (LTH) have started liquidating their holdings. The recent surge reflects a decisive shift in investor sentiment, marking the biggest rise in more than two months.
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LTH is considered the most influential group within the market due to its large holdings and long-standing beliefs. The fact that they start selling indicates growing doubts about their short-term performance. This selling activity could trigger a broad market reaction, amplify the bearish momentum, and put further pressure on Ethereum price stability.
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Ethereum’s broad macro momentum appears to be weak as technical indicators point to a weakening bullish trend. The Relative Strength Index (RSI) remains below the neutral level of 50.0, indicating that buyers are losing control. This suggests a lack of investor enthusiasm despite the price being close to key support levels.
An RSI value below 50.0 typically indicates continued selling pressure and limited recovery potential. Broader market conditions are also showing weakness, and Ethereum may struggle to regain momentum.
ETH price is aiming for a sharp rise
Ethereum price is at $3,950 at the time of writing, below the key resistance level at $4,000. The altcoin is fluctuating around $3,872, with no clear directional bias.
Current indicators suggest that this consolidation above the $3,742 support is likely to continue. However, if market conditions worsen and ETH falls below $3,742, it could fall further towards $3,489. Such a move would confirm a bearish continuation pattern.
On the contrary, Ethereum could break above the $4,000 resistance level if buying activity strengthens and overall sentiment improves. A successful breakout would pave the way for $4,221, invalidating the bearish outlook and signaling renewed investor confidence.
