Ethereum (ETH) has seen a significant 18.66% increase in value over the past month, but its upward momentum has recently stalled. While its weekly performance showed a slight 0.02% uptick, daily gains have been modest, standing at 0.20%.
Current market signals suggest a bearish outlook for ETH, casting doubt on the possibility of a bullish breakout that many had anticipated.
Will Ethereum Surpass $3,400 Amidst Bullish Predictions?
Analyzing the charts, Carl Runefelt noted that ETH is currently trading below a descending resistance pattern, a formation often associated with an upcoming price surge.
Considering this pattern, there is a potential for ETH to reach $3,420, the peak of the formation, indicating an 8.55% increase from its current value.
Runefelt highlighted the necessity for Ethereum to break above this descending resistance to regain its bullish momentum.
However, the market sentiment appears divided, with a lack of consensus supporting a breakout above the resistance level at this point.
Increasing Selling Pressure Depresses ETH Value
Data from CryptoQuant reveals that U.S. investors are divesting their ETH holdings, signaling a diminishing interest in the asset and dampening hopes for a price rally.
This trend is evident in the Coinbase Premium Index, which shows a decline from 0.1346 in April to 0.0256, indicating reduced demand for ETH among U.S. investors compared to global markets.
The surge in Exchange Netflow, measuring ETH movement across exchanges, aligns with the increased sell-off.
Currently, ETH’s Exchange Netflow remains positive for the third consecutive day, with a substantial inflow of 28,726.8 ETH in the past 24 hours. This surge in selling pressure has negatively impacted ETH’s price trajectory and is likely to persist with continued positive Netflow.
Sellers Prevail as Ethereum Faces Challenges
The Taker Buy/Sell Ratio analysis, indicating the dominance of buyers or sellers in the market, shows that sellers are currently in control.
With the ratio standing at 0.9033 at present, below the critical threshold of 1, the selling pressure surpasses buying activity as more investors offload their ETH holdings. If these bearish trends persist across various metrics, ETH’s ability to surpass its resistance line remains uncertain, potentially leading to further price declines.