Whales are selling heavily, LTH is also shaken – Is ETH losing confidence?

Ethereum, the world's second-largest cryptocurrency, is experiencing a prolonged sideways period, as the price continues to hover around $2,512 without being able to make any significant breakout. Despite being dubbed the "king of altcoins", ETH is currently struggling to break through key resistance zones, amid increasingly cautious market sentiment and increasing selling pressure.

The selling cash flow is increasing

One of the most disturbing signals comes from the change in ETH's net position on exchanges. According to data from Glassnode, over the past five days, more than 350,000 ETH (tương equivalent to about 870 million USD) have been transferred to exchanges – a clear indicator of investors' intention to sell. The fact that ETH is constantly pouring into exchanges is a sign of a bearish price, indicating that holding sentiment is weakening.

Notably, most of this selling volume comes from large investors – those who previously often played a key role in supporting prices. Their active reduction of positions reflects weakened confidence in the short-term recovery potential of ETH. If this trend continues, the market may witness a lack of demand and fall into a prolonged stagnation.

Change in net position of Ethereum on the exchange | Source: Glassnode## Long-term holders are also wavering

Not only short-term investors, but even long-term holders (LTH) are showing signs of declining confidence. The Coin Days Destroyed (CDD) index – used to measure the activity of coins that have not moved for a long time – has recorded several recent spikes. This proves that even the most loyal investors in ETH are beginning to act in light of the not-so-optimistic outlook.

Market history shows that when LTH starts to sell, it is often a sign of a deeper correction cycle. This move not only negatively impacts prices in the short term but also undermines general confidence in the recovery potential of ETH.

CDD of Ethereum | Source: Glassnode## What's next for ETH price?

Currently, Ethereum is trading around the mark of 2,512 USD – just slightly above the local support zone at 2,476 USD. Although this price level is not alarming yet, in the context of a volatile market and continuously increasing selling pressure, the short-term outlook for ETH is becoming increasingly dim. Signals from the macro market still lack clear direction, causing Ethereum to fall into a state of hesitation, without a clear impetus to break out.

If the downtrend continues, ETH could slide below the important support level at 2,344 USD – a key threshold that has previously acted as the "last line of defense" during past corrections. Breaking this level could open up the risk of ETH continuing to plummet to the zone of 2,205 USD, increasing losses for investors and reinforcing the downtrend that is forming.

! ETH Price Chart 1 Day | Source: TradingViewHowever, the bullish scenario has not yet been completely nullified. If ETH can hold above the $2,476 mark and the selling force begins to weaken, the coin can completely bounce up. A rally that takes the price above $2,606 – and beyond $2,681 – will be enough to nullify the current bearish outlook, while rekindling confidence in Ethereum's uptrend in the near term.

Ethereum is currently at a crossroads: on one side is the increasing pressure of declining prices, while on the other is the opportunity for recovery if the market turns positively. Investors need to closely monitor key technical levels, as the price action in the coming sessions will determine the next move for this leading altcoin.

Annie

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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