Ethereum Faces 300% Increase in Selling Pressure Amid Bearish Indicators

Ethereum Price Bounce Threatened by Bearish Signals

Ethereum's price recently rebounded nearly 10% from lows around $2,600, gaining about 1% today. Despite this positive movement, the sustainability of the recovery is in question.

Holder Selling Surges 300% Amid Death Cross Formation

Two interconnected bearish signals suggest further potential downside. Long-term holders, typically retaining ETH for over 155 days, have significantly increased their selling. On November 22, net selling reached approximately 334,600 ETH, skyrocketing to 1,027,240 ETH the following day—a 300% rise. This substantial sell-off from long-term investors adds pressure as ETH trades in a downtrend.

Additionally, a death cross is nearing formation, where the 50-day exponential moving average (EMA) falls below the 200-day EMA, indicating strong downward momentum. This technical pattern could exacerbate price declines if selling pressure persists.

Ethereum Price Action: Assessing Downside Risks

Currently trading near $2,820, Ethereum faces more resistance above than support below. Critical support lies at $2,710, the 0.786 Fibonacci level. Breaching this could lead to a decline towards $2,450, marking a potential 13% drop. If the death cross completes amid continued selling, ETH might fall to or below this level, especially under deteriorating market conditions.

Beneath $2,452, further support is around $1,700, potentially reached if the bearish trend accelerates. Conversely, reclaiming $3,190 and $3,660 is crucial for bullish momentum, though challenging under current bearish influences.