Ethereum long-term holders exit positions as bears return
ETH may fall below $2,344 as $870M hits exchanges
Ethereum (ETH) is once again under downward pressure as bearish sentiment intensifies across the market.
The world's second-largest cryptocurrency is currently trading at approximately $2,495, with key technical indicators suggesting a potential breakdown below the $2,344 support level, Beincrypto reported.
Key takeaways
- $870 million in ETH moved to exchanges: A strong bearish signal as holders reduce risk exposure.
- ETH at risk of falling below $2,344: A critical support level that, if broken, may accelerate losses.
- CDD metric indicates LTHs are selling: Confidence in Ethereum’s short-term price stability is waning.
Investor behavior hints at waning confidence
Over the past five days, more than 350,000 ETH—valued at $870 million—have been transferred to exchanges, a move typically associated with growing sell-side activity and investor uncertainty.
This increased flow of Ethereum to trading platforms has sparked renewed concerns about short-term market confidence, particularly among long-term holders (LTHs) who appear to be reducing their exposure. The Coin Days Destroyed (CDD) metric, which tracks the movement of dormant coins, has also surged—further underscoring that investors who previously held ETH for the long haul may now be preparing to exit positions.
Ethereum exchange net position change. Source: Glassnode
The influx of 350,000 ETH into centralized exchanges suggests that even seasoned investors may be rethinking their positions. Historically, such large transfers have preceded price corrections, as increased availability on exchanges correlates with higher sell pressure. The shift among long-term holders—who typically avoid reactionary trades—suggests a broader market unease that could prolong Ethereum’s struggle for upward momentum.
Support and resistance levels to watch
Technical analysis indicates that Ethereum could see significant downside if it fails to maintain support at $2,344. A sustained drop below this level may deepen losses. On the other hand, if sentiment improves, ETH could aim for resistance levels at $2,606 and $2,681. Traders and investors are watching closely, especially as macroeconomic uncertainty and crypto-specific developments continue to influence market direction.
Whether this wave of selling marks a temporary setback or the beginning of a larger correction remains uncertain. As market volatility continues, Ethereum’s ability to reclaim bullish momentum will depend on both broader investor sentiment and key technical thresholds.
We also informed earlier Ethereum gains institutional support with BlackRock and Fidelity inflows.
