Journalist
Published:
- Buying pressure on ETH has remained high in recent days.
- Technical indicators support the possibility of a price increase.
The market situation remains bearish, Ethereum (ETH)like most other cryptos, has also seen corrections.
The latest pullback has now become a test for the bulls as the king of altcoins failed to breach the $3.9K resistance.
Ethereum bulls under pressure
ETH saw a price correction of over 3% in the last 24 hours, pushing its price below $3,000. At the time of writing, the king of altcoins was trading at $3,760.02 with a market cap of over $452 billion.
As the price of the token fell, the Ethereum Foundation made a decision. Spot On Chain recently published a tweet revealing that the Ethereum Foundation just sold 100 ETH for 374,334 DAI.
This brought their total ETH sale in 2024 to 4,366 ETH for $12.21 million at an average price of $2,796.
To see if this selling trend was dominant in the market, AMBCrypto checked other datasets.
Fortunately, not all investors sold their holdings, which can help the bulls restart the rally and allow ETH to cross $3.9K again.
This trend was highlighted by the decline in ETH balance on exchanges over the past two weeks.
Source: Glassnode
Hyblock Capital’s data revealed that after a spike, ETH sales volume fell to 9.6. For starters, a number closer to 0 indicates less selling pressure, while a value closer to 100 portends high selling pressure.
However, the whales chose to move in the other direction. According to CFGI.io datawhale sentiment reached 61.5%, a sign of high movements of whales for sale.
Will ETH Bulls Reverse the Downtrend?
Although the whales have decided to sell, the ETH bulls could still manage to push the price of the token higher. Ethereum’s NVT ratio has recorded a decline over the past few days.
Whenever the metric drops, it means an asset is undervalued, suggesting a price rise in the coming days.
Source: Glassnode
Apart from this, AMBCrypto also found that ETH Long/short ratio increased within 4 hours.
This means that there were more long positions in the market than short positions, which generally suggests a rise in bullish sentiment around a token.
A few technical indicators also suggest that Ethereum bulls could make a comeback. For example, the technical indicator Relative Strength Index (RSI) recorded a slight increase.
Read Ethereum (ETH) Price Prediction 2024-2025
Chaikin Money Flow (CMF) has also increased. A rise in the CMF indicates that buying pressure is increasing and the market or asset may be entering an uptrend.
Therefore, Ethereum bulls could pass the test and help ETH price rally in the near term.
Source: TradingView
