With the crypto market maintaining a bearish stance, Ethereum (ETH) experienced a downturn like many other cryptocurrencies.
The recent decline has presented a challenge for the bulls as ETH struggled to break through the $3.9k resistance level.
Pressure Mounts on Ethereum Bulls
In the last 24 hours, ETH saw a price correction of over 3%, causing its value to fall below $3.8k. As of now, the top altcoin is trading at $3,760.02 with a market cap exceeding $452 billion.
Meanwhile, amidst this price drop, the Ethereum Foundation made headlines. Spot On Chain shared a tweet disclosing the Foundation’s recent sale of 100 ETH for 374,334 DAI.
With this move, their total ETH sales in 2024 have now reached 4,366 ETH, totaling $12.21 million at an average price of $2,796.
To analyze if this selling activity was widespread, additional data from various sources was scrutinized.
Fortunately, not all investors followed suit in selling their assets, potentially aiding the bulls in initiating a recovery to breach the $3.9k barrier once more.
This sentiment was echoed by the decrease in ETH holdings on exchanges over the past fortnight.
According to Hyblock Capital’s data, the selling volume for ETH dropped to 9.6. A reading closer to 0 suggests reduced selling pressure, while nearing 100 indicates substantial selling activity.
Conversely, large holders took a different course. CFGI.io reported that whale sentiment had risen to 61.5%, indicating significant whale activity involved in selling.
Can Ethereum Bulls Reverse the Current Downtrend?
Despite whale selling, there remains optimism for ETH bulls to drive up prices. Ethereum’s NVT Ratio exhibited a downward trend over the past few days.
A decreasing NVT Ratio typically implies undervaluation, hinting at an impending price surge.
Furthermore, CryptoCrypto’s analysis revealed a surge in ETH’s Long/Short Ratio within the 4-hour timeframe.
This uptick points towards a higher prevalence of long positions, typically indicating growing bullish sentiment surrounding the asset.
Several technical indicators also suggest a potential resurgence by Ethereum bulls. Notably, the Relative Strength Index (RSI) experienced a minor rise.
Additionally, the Chaikin Money Flow (CMF) exhibited an upward movement. A rise in CMF signifies an increase in buying pressure and suggests a possible uptrend for the asset or market.
Thus, Ethereum bulls might overcome the current test and elevate ETH’s value once again in the immediate future.