The Ethereum price under pressure is trading near $3,950, failing in its attempts to reclaim the critical $4,000 level. This market weakness coincides with a notable increase in liquidation by long-term investors. Recent data from the on-chain analytics platform Glassnode shows significant selling activity from this cohort.
The primary indicator revealing this trend is “Coin Days Destroyed” (CDD). This metric registered its largest spike in over two months. CDD tracks the activity of “older” coins or those that have not moved in a long time. A spike suggests that older investors are moving their assets, most likely with the intent to sell.
Furthermore, technical indicators reflect this lack of upward momentum. The Relative Strength Index (RSI) remains below the neutral 50.0 level, indicating that selling strength currently outpaces buying strength in the market.
The context of these sales is crucial. Sales from long-term holders (LTHs) are particularly significant. This group is commonly seen as the “strong hands” of the market. Their conviction often helps stabilize the price during downturns. When LTHs begin to sell, it is interpreted as a sign of doubt about the asset’s short-term performance. This action increases overall bearish pressure. It can also discourage new buyers who are waiting for signs of strength in the digital economy.
Can Ethereum Avoid a Drop Toward $3,500?
Currently, Ethereum’s price is consolidating above the key support of $3,742. As long as the price manages to hold above this level, the sideways consolidation phase could continue. However, the market shows little clear directional bias near the $3,950 zone. Analysts are closely watching the $4,000 level. This acts as a strong psychological barrier and technical resistance.
The immediate future scenario depends on breaking out of this price range. If the Ethereum price under pressure finally gives way and falls below the $3,742 support, a bearish pattern would be confirmed. The next likely target for sellers would be the $3,489 support level. Conversely, a successful break above $4,000 would invalidate the bearish outlook. This would open the path for Ethereum to target the next major resistance at $4,221, renewing investor confidence.
