Ethereum (ETH) has been facing increased selling pressure from both long-term and short-term holders, leading to a surge in bearish sentiment. Despite this, the cryptocurrency managed to gain 4% on Monday, thanks to whales stepping in to buy the dip and support the price. Whales holding between 100K to 1M ETH increased their holdings by 410K ETH, showing confidence in a potential uptrend resumption after the holidays.
The recent selling activity by both long-term and short-term holders has been evident in metrics such as the Network Realized Profit/Loss and the Dormant Circulation. Investors have realized profits of over $340 million and losses of $30 million, indicating a high level of selling pressure and bearish sentiment. The Dormant Circulation metric also shows spikes in selling activity, suggesting that the bearish trend is gaining strength.
Despite the increased selling activity, Ethereum exchange reserves have continued to decline as investors withdraw their holdings. The US spot Ethereum ETFs have also maintained their weekly net inflow streak, recording $62.7 million in net inflows last week. This shows continued interest from investors in Ethereum, even in the face of selling pressure.
In terms of price forecast, ETH is currently hovering between the $3,250 support and $3,423 resistance levels. If it breaks below the $3,250 support, the cryptocurrency could decline towards the $3,000 psychological level. The $3,000 target is calculated based on a double top pattern that ETH formed in December, with the 100-day and 200-day SMAs potentially strengthening this level as a key support zone.
To resume its uptrend, ETH will need to recover the $3,550 support level with high volume. The Relative Strength Index (RSI) and Stochastic Oscillator indicators are currently below their neutral levels, indicating bearish momentum in the market. However, a daily close above $4,093 could invalidate the bearish thesis and signal a potential reversal in trend for Ethereum.
