Ethereum faces uphill battle as LTH liquidations hit 2-year high
Ethereum struggles below $3,500 as investor panic selling fuels volatility and uncertainty” 2. “Ethereum faces bearish pressure, risks dropping to $3,000 if key resistance at $3,524
Ethereum is facing persistent challenges as it struggles to reclaim the $3,500 level, a critical resistance point necessary for pushing toward $4,000.
Worsening market conditions and heightened investor uncertainty are reducing the likelihood of a near-term recovery, reports BeInCrypto.
Investor Panic Selling Adds Pressure
Recent Ethereum transactions show a dominance of losses over profits, with short-term holders panic-selling to secure gains or reinvest during dips. However, this behavior has led to missed opportunities and further volatility, contributing to Ethereum’s inability to stabilize above key support levels.
Ethereum’s Liveliness indicator—a metric tracking long-term holder (LTH) activity—has reached a two-year high, signaling that LTHs are liquidating their positions. This typically bearish signal highlights profit-taking behavior, undermining confidence and adding pressure on prices.
Price Levels and Outlook
Currently trading at $3,402, Ethereum is holding above support at $3,327 but has failed to break resistance at $3,524. The price consolidation, which has lasted nearly two weeks, reflects uncertainty and a lack of bullish momentum.
If Ethereum fails to breach $3,524, it risks testing $3,000, potentially extending losses and delaying recovery. Conversely, flipping $3,524 into support could pave the way for gains toward $3,721, restoring confidence among investors and stabilizing the market.
Recently we wrote, that the launch of spot Bitcoin ETFs and Ethereum ETFs in the United States this year has significantly reshaped the exchange-traded fund (ETF) market.
