A significant group of investors are selling their Ethereum holdings, making the price drop. These actions are pushing the altcoin’s price lower than retail investors could, despite their optimism.
Investors Selling Ethereum
Ethereum’s price is currently falling. This is due to broader market bearishness and a lukewarm response to the launch of spot ETH ETFs. Additionally, mid- and long-term holders are selling their assets to secure profits. These investors usually help stabilize prices even in bearish markets. However, their recent sell-off has disrupted potential bullish trends.
In the past week, approximately 740,000 ETH, worth close to $2.4 billion, has been sold by these investors. These assets were last active between six months and two years ago. This development has worsened the price decline but hasn’t significantly affected retail investors. The Net Unrealized Profit/Loss (NUPL) indicator shows that these investors remain optimistic about a future price increase.
The indicator is currently in the Optimism zone, signaling that ETH holders expect gains in the coming trading sessions. However, it’s uncertain if this optimism can lift Ethereum’s price.
ETH Price Prediction: Recovery Challenges
Right now, Ethereum’s price is above the 23.6% Fibonacci Retracement line. This position is known as the bear market support floor. This support is preventing further decline but also hindering recovery. ETH is struggling to break through the 38.2% Fib line at $3,304. A rally beyond this, potentially reaching the 50% Fib line at $3,455, could be difficult.
If the selling continues and broader market bearishness persists, a drop to the 23.6% Fib line and a slip below $3,118 is possible. This would invalidate the neutral-bullish outlook.
