Ethereum (ETH), the second-largest cryptocurrency by market cap, has faced continuous struggles throughout the year.
Despite multiple attempts to regain momentum, Ethereum has fallen below $3,000 at times, reflecting an inability to sustain the recovery. This lack of upward movement caused investor caution, prompting many to sell their holdings to secure profits.
Ethereum investors are running out of patience
Investor sentiment surrounding Ethereum in particular has shifted, as holders move to unload their assets amid growing uncertainties. Over the past week, more than 410,000 ETH were sold, worth over $1.3 billion. This surge in selling is evident in the increased supply of ETH on exchanges, which is a clear signal that investors are taking advantage of the recent price action rather than taking long-term gains.
This surge in selling pressure highlights the confidence building among market participants, who appear unconvinced of Ethereum’s ability to sustain a meaningful recovery. The lack of strong upward price action has increased uncertainty, resulting in a shift towards profit making behaviour.
Ethereum’s overall momentum presents a mixed outlook. Network Value to Signal Transactions (NVT), a key metric for assessing valuation, fell to a 25-month low. This suggests that Ethereum is currently undervalued, which historically indicates potential for a recovery and rally in the medium to long term.
The undervaluation shown by the NVT signal could prevent Ethereum from experiencing sharp corrections, providing some hope for a reversal in sentiment. If this undervalued status attracts renewed interest, ETH may have a chance to stabilize and surpass its current barriers.
ETH Price Prediction: Breaking Down the Barriers
Ethereum price is currently holding the support level at $3,303, after a failed attempt to break the $3,530 barrier. Last week, the cryptocurrency fell to $3,131, highlighting its ongoing struggle to maintain upward momentum.
Given the current conditions, Ethereum is likely to continue consolidating below the $3,530 resistance level. Failure to reclaim this crucial barrier could see ETH retreat to $3,131, weakening market confidence.
On the other hand, a successful $3,530 breach could mark a turning point for Ethereum. Such a move would likely push the price towards $3,711, restoring investor confidence and invalidating the bearish outlook. However, continued buying pressure and favorable market conditions will be crucial for this scenario.
Disclaimer
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