Ethereum (ETH) has shown little price movement over the past two weeks despite the broader cryptocurrency market displaying bullish momentum.
This stagnation in ETH’s price comes at a time when selling activity has intensified. These factors suggest a cautious short-term outlook for Ethereum as the week continues.
Ethereum Investors Secure Their Profits
Recent data indicates significant selling pressure on Ethereum. Over the last 48 hours, investors have sold more than 225,779 ETH tokens. This volume translates to a supply worth approximately $576 million, reflecting a rapid pace of offloading.
Such extensive selling indicates reduced investor confidence. Many appear to be securing profits amid doubts about further price appreciation. This behavior often signals a shift toward risk aversion in the short term.
Ethereum Exchange Position Change. Source: Glassnode
Technical indicators add to the bearish sentiment surrounding Ethereum. The Moving Average Convergence Divergence (MACD) shows a bearish crossover after nearly seven weeks of bullish momentum. This change often precedes a price decline or increased volatility.
Losing bullish momentum weakens Ethereum’s price support. Without fresh buying interest, ETH may face further downward pressure as traders adjust positions in response to technical signals.
Ethereum MACD. Source: TradingView
ETH Price is Stuck
Ethereum is currently trading near $2,553, maintaining a critical support level of around $2,500. The altcoin king has hovered above this threshold for some time, but its ability to hold this level is being tested.
If bearish pressures continue, Ethereum could break below $2,500 and move lower toward the next support at $2,344. However, if buying interest returns, ETH may consolidate between $2,500 and the resistance level of $2,654 for a period.
Ethereum Price Analysis. Source: TradingView
For the short-term bearish outlook to change, Ethereum must breach the resistance near $2,654. A sustained move beyond this point could push the price up toward $2,814, reigniting investor optimism and supporting further gains.
