Ethereum (ETH) has staged a recovery after bouncing from recent lows, pushing closer to the $4,500 level. The rally comes even as some of the most crucial long-term holders (LTHs) exit positions.
Other investors, however, appear to be countering the impact through consistent inflows that are supporting price strength.
Ethereum Investors Counter Each Other
On-chain data shows Ethereum’s Liveliness metric trending higher, a signal that long-term holders continue to sell. This group holds significant influence, and their selling often creates downward pressure on ETH’s valuation. Their recent activity reflects caution and suggests that some larger investors remain unconvinced about near-term sustainability.
The problem lies in the weight these holders carry in the market. When LTHs reduce exposure, their moves tend to unsettle traders and trigger selling cascades. While Ethereum has maintained upward momentum so far, the persistence of LTH exits raises questions about how long the strength can last.
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Ethereum Liveliness. Source: Glassnode
Despite the selling, other investor groups are offsetting the impact. The Chaikin Money Flow (CMF) has risen sharply, reflecting a surge in inflows into Ethereum. This increase suggests that conviction among short-term and mid-term holders is growing, with capital entering the market at a steady pace.
The uptick in inflows provides balance against LTH selling pressure. Strong demand and continued confidence from these groups are helping ETH stabilize, reducing the risk of deeper declines. This resilience indicates that market participants see long-term value in Ethereum despite mixed signals from influential holders.
ETH CMF. Source: TradingView
ETH Price Faces Resistance
Ethereum is trading at $4,383, just below the $4,500 resistance level. The altcoin king has attempted several times to secure $4,500 as a support floor but has not yet succeeded. This remains the most critical barrier in determining ETH’s near-term direction.
If inflows continue strengthening, ETH could break past $4,500 and secure it as support. Such a move would pave the way for a rise toward $4,775 and potentially retest the all-time high of $4,956. The continuation of this momentum would reinforce a strongly bullish outlook.
ETH Price Analysis. Source: TradingView
However, failure to breach resistance could change sentiment. Ethereum risks slipping back to $4,222 support, with the possibility of falling to $4,074. Such a decline would invalidate the bullish thesis and signal renewed weakness in the altcoin king’s price action.
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