Ethereum’s recent recovery seems to have hit a snag, as ETH has been trading sideways under increasing sales pressure.
This hesitance primarily comes from long-term holders (LTHs) who are keen to secure their profits. While this behavior isn’t new, its resurgence introduces fresh concerns.
Key Ethereum Holders Selling
Metrics from LTH NET regarding Unrealized Profit and Loss (NUPL) show that Ethereum struggles whenever this indicator surpasses the 0.65 mark.
High profit levels lead to a saturation where seasoned investors are more likely to sell instead of holding, resulting in price stagnation and corrections.
At present, Ethereum is exhibiting patterns similar to previous cycles. As LTHs cash in on notable profits, their selling is hindering ETH’s upward momentum. Buyers are hesitant to take on the sales pressure, which makes ETH susceptible to broader market influences.
The Day of Destroyed Coins (CDD) metric reinforces this trend by illustrating that LTHs are actively liquidating their positions. In the last 24 hours, CDD has recorded its highest spike in two months, underscoring a significant uptick in sales.
This kind of activity can indicate further negative risks. When sales spike at high levels, it often points to a lack of confidence in the quick recovery of prices. If these sales aren’t countered by strong buying interest from other investor cohorts, ETH may be facing a cooling phase.
ETH Prices Staying Flat
Currently, Ethereum is priced at $4,294, which is above the $4,222 support level. However, it hasn’t managed to break through the $4,500 mark in recent days. This threshold has become a significant resistance point for the leading altcoin.
This situation suggests that ETH might stay within this range in the near future. The profit-taking from LTHs limits the potential for increases, causing ETH to oscillate between $4,222 and $4,500 unless market demand improves significantly or starts absorbing the ongoing sales pressure.
There’s still potential for recovery if other investors decide to purchase ETH from long-term holders. If this support leads to a successful break above $4,500, it could set the stage for ETH to test the $4,749 range again.
This could potentially signal a return to a broader bullish trend.
