Ethereum has experienced a explosive price surge over the past week, rising more than 22% and reaching a high near $3,856. However, the recent 4.18% drop in the last 24 hours has raised questions about short-term momentum. Despite ongoing concerns due to regulatory uncertainty and capital outflows from ETFs, Ethereum's fundamentals and on-chain data suggest that this could be a healthy cooling-off period rather than a trend reversal. Curious about ETH's next milestone? Read this short-term ETH price analysis to find the targets.
Hold Strategy Amid Selling Pressure
According to Glassnode's Cost Basis Distribution Heatmap, a large group of ETH investors accumulating around $2,520 has begun to take profits. This is evidenced by the fading red bands since early July. However, nearly 2 million ETH from this group remains inactive. This foundation reveals three key insights:
Holders are taking some profits but not fully retreating.
The remaining positions show continued confidence in the bullish trend.
New buyers are under selling pressure, indicating increasing demand.
This distribution behavior highlights a maturing group of investors using price surges to rebalance while maintaining confidence in ETH's medium-term outlook.
Ethereum Price Analysis
Ethereum is currently trading at $3,635, with a decrease of -4.18% in the past 24 hours. The RSI has dropped from the overbought zone of 70 to 51, indicating weakening bullish momentum. The price has also broken below the 20-period EMA line on the 4-hour chart, a sign of short-term bearish pressure.
The key support level is seen at $3,550, a zone with potential for a bounce back. If this level cannot be surpassed, ETH may continue to decline to $3,525. On the positive side, Ethereum's price needs to break through the resistance level of $3,870 to hope to retest the $4,096 mark.
