A hemorrhage that recalls the dark hours of 2021
The Ethereum market is currently experiencing unprecedented selling pressure not seen since 2021. On-chain data reveals that long-term holders (LTH), those investors who typically hold their positions for more than a year, are massively divesting their holdings. This capital outflow reaches 45,000 ETH per day, approximately $144 million daily at current prices.
ETH is currently trading around $3,211, displaying a brutal 10% drop in just 24 hours. Over a slightly longer period, the loss reaches 4%, confirming a well-established bearish momentum. This massive selling movement by LTH represents a particularly negative signal for market sentiment. Historically, these investors represent the solid foundation of the Ethereum network, and their decision to take profits or limit losses indicates a lack of short-term confidence.
The behavior of LTH sharply contrasts with bullish periods, where these same players typically accumulate during corrections. Their current distribution strategy suggests they either anticipate a prolonged decline or have reached their price targets and prefer to secure their gains. This capital rotation directly impacts available liquidity and creates an imbalance between supply and demand on exchanges.
Ethereum support levels under high surveillance
From a technical perspective, Ethereum is navigating dangerous territory. Breaking through the psychological threshold of $3,200 exposes the asset to a cascade of potential liquidations. Traders are closely watching the critical support located between $3,000 and $3,100, which could constitute the last line of defense before a plunge toward $2,800.
Technical indicators confirm the current weakness. The RSI (Relative Strength Index) is moving in oversold territory without showing any significant bullish divergence. The 50 and 200-day exponential moving averages display a bearish crossover, a dreaded technical configuration that suggests continuation of the downward trend. Transaction volume accompanies this downward movement, reinforcing the validity of the bearish signal.
Market makers and whales appear absent from the picture for now. No significant accumulation has been detected in current support zones, suggesting that large portfolios are waiting for even lower levels to re-enter positions. This absence of major institutional buyers maintains selling pressure and prevents any lasting price stabilization.
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