Ethereum has failed to regain momentum following a 15.8% decline earlier this month. The altcoin king continues to struggle with weak recovery signals, trading sideways as investors cautiously adjust their positions.
Although selling pressure has eased, Ethereum’s price recovery remains limited due to broader market headwinds.
Ethereum Investors’ Selling Recedes
Data from the exchange net position change indicator shows a gradual decline in Ethereum outflows over the past few days. This trend suggests investors are slowing their selling activity, which could favor a potential stabilization in price.
A consistent reduction in exchange outflows typically reflects cooling bearish sentiment among traders. However, the current phase marks a pause rather than a reversal. The drop in selling volume has yet to translate into notable accumulation, a key condition for sustained recovery.
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Ethereum Exchange Net Position Change. Source: Glassnode
The Relative Strength Index (RSI) paints a cautious picture of Ethereum’s momentum. The indicator remains below the neutral 50 mark, signaling persistent bearish pressure despite a slight rebound from oversold conditions. This suggests that sellers still hold dominance, and ETH’s path to recovery remains uncertain.
For Ethereum to reclaim bullish momentum, the RSI must climb above 50 and sustain higher readings. Such a move would indicate renewed investor confidence and stronger buying activity, which could help drive price recovery.
ETH RSI. Source: TradingView
ETH Price May End Up Consolidating
Ethereum is trading at $3,512, holding slightly above the $3,489 support level after recent volatility. Despite minor improvements, the altcoin king remains below key resistance levels, struggling to recover fully from this month’s 15.8% decline.
ETH price must breach the $3,607 resistance to confirm a shift in trend. Current indicators suggest it may continue consolidating within the $3,489 to $3,287 range as momentum remains neutral.
ETH Price Analysis. Source: TradingView
If market conditions improve next week, Ethereum could bounce back and test $3,607 again. A successful breakout could push the price toward $3,802. This would signal renewed bullish strength and invalidate the current bearish outlook.
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