Crypto

Can Ethereum (ETH) Reclaim 15% Losses Amid Easing Selling Pressure?

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Ethereum ETH

Ethereum (ETH) is trading at $3,197 after a recent 15% decline pulled the price below the $3,200 mark.

However, reduced selling pressure and investor resilience signal that Ethereum may be primed for a recovery.

Reduced Selling Activity Bolsters Market Stability

The concentration of Ethereum investors in profit has dropped from 33% to 14%, according to data from IntoTheBlock.

This decline is significant because profitable investors are more likely to sell, which can create downward pressure on prices.

When the proportion of profitable addresses falls below 25%, selling activity tends to decrease, providing the market with much-needed stability.

Additionally, Ethereum’s transaction volume has been dominated by losses in recent weeks, with many investors opting to hold rather than sell.

Key Levels for Recovery

To recover its recent losses, Ethereum must:

  1. Reclaim $3,327 as support, a critical resistance level for a bullish rebound.
  2. Target $3,524, a primary resistance level that could pave the way for further upside.

If Ethereum breaches these levels, the altcoin could regain lost ground and potentially resume its upward trajectory.

Downside Risks

Failure to break through $3,327 could push Ethereum down to test the $3,028 support level. A drop below this threshold would invalidate the bullish outlook and raise caution among investors.

Ethereum’s reduced selling pressure and investor resilience are positive signs for a recovery. However, the ability to breach key resistance levels will determine whether ETH can reclaim its losses or face further downside.

Written by
Sazid Kabir

I've loved music and writing all my life. That's why I started this blog. In my spare time, I make music and run this blog for fellow music fans.

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