Ethereum (ETH) holders lose conviction, ready to sell

The price of Ethereum (ETH) disappointed investors, falling from nearly $4,000 to $3,500.

This caused many holders to move their ETH to the exchange to minimize their losses.

Ethereum investors lose confidence

Falling Ethereum prices are causing ETH holders to become skeptical, with many moving to sell their holdings to recoup their losses.

Looking at the network's realized profit and loss indicator, profit taking has increased over the past few days. The surge in the metric is the largest in three months, with the last such sell-off seen in March when ETH rallied. But this is done as optimism about additional profits is waning.

It was the long-term owners who sold on the most serious network. These investors tend to hold their assets for more than one year. Their HODL in the face of rejection shows guilt and belief in recovery. On the other hand, their selling quickly escalates into a depression, causing further price declines.

This is evident in the era of ETH consumption, as an increase in addresses indicates an increase in supply activity. This shows a decline in sentiment among investors.

In the case of Ethereum, this indicator spike is not a good sign for the crypto asset. It shows that long-term owners cannot recover in the future.

Read more: What is the Ethereum Cancun-Deneb (Dencun) update?

ETH Price Prediction: Another Dep

Ethereum price, trading at $3,578, faced resistance from the 50% Fibonacci Retracement level. This resistance is likely to intensify as investor pessimism increases, forcing ETH to achieve the breach.

The downside is likely to stop at $3,400, just above the 38.2% Fib level, which has been tested as support several times before.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

On the other hand, a successful breach of the 50% Fib line marked at $3,582 and a reversal to support will invalidate the bearish study. This allows Ethereum price to recover its losses and return to $3,800.