Will Ethereum Price Fall Below $3,000 Amid Mounting Pressure?

Ethereum Faces Price Pressure

Ethereum's price is under pressure after failing to sustain above key resistance levels, indicating potential bearish trends. Despite support from long-term holders, increasing sell-side pressure and weak market conditions are testing this stability.

Long-Term Holders' Influence

On-chain data reveals that long-term Ethereum holders continue to accumulate, with the HODLer Net Position Change indicating consistent accumulation since late December. This has helped mitigate recent declines, but ongoing macroeconomic and derivative pressures could challenge this support.

Bearish Signals in Derivatives Market

The Ethereum derivatives market shows a bearish sentiment, with over 83% of open futures positions leaning short. This imbalance could amplify volatility near significant price levels, such as the $3,000 mark.

Technical Indicators and Potential Decline

Momentum indicators suggest a bearish outlook, with the Money Flow Index indicating capital outflows. If Ethereum's price breaks below $3,085, it could lead to further declines toward $2,900.

Potential for Reversal

A bullish reversal is possible if long-term holders maintain control. A rebound from $3,085 might trigger a recovery attempt toward $3,287, invalidating the bearish scenario.