• Ethereum is trading at $3,805, struggling to reclaim $4,000 as long-term holders (LTHs) increase selling and weaken accumulation trends.

  • Exchange inflows are increasing while outflows slow down, indicating profit-taking and hesitation among investors.

  • If ETH fails to hold $3,742, it could drop to $3,489; reclaiming $4,000 could target $4,221 and restore short-term upward momentum.

Ethereum ($ETH ) continues to face resistance at the $4,000 mark after multiple failed recovery attempts. Despite the overall market stabilizing, the second-largest cryptocurrency struggles to convert this key psychological level into support.

Sell pressure from long-term holders (LTHs) remains a key obstacle, limiting Ethereum's ability to regain upward momentum.

Ethereum holders are selling

Net position data on exchanges reveals a significant shift in trader behavior over the past ten days. Outflows from exchanges, which typically indicate accumulation, have sharply declined. This slowdown suggests that investors are pulling back from buying, reflecting uncertainty in Ethereum's near-term performance as the market absorbs recent price fluctuations.

As outflows decline, inflows gain momentum, indicating that more ETH is moving to exchanges for potential sale. This shift often precedes an increase in downward pressure as traders seek to secure profits or cut losses.

Change in net Ethereum position on exchanges. Source: Glassnode

Ethereum on-chain data highlights overall momentum weakness. The consumed age metric - an indicator of dormant coins being moved - saw a significant spike over the past 24 hours. This increase represents the third-largest movement in over three months, suggesting that long-term holders who were previously inactive have started selling their assets.

Such an increase in consumed age typically indicates a wave of profit-taking or loss prevention. As long-term holders bring their holdings back to trading, this shows growing impatience with stagnant prices.

Consumed age of Ethereum. Source: Santiment

ETH price cannot break through this resistance

The price $ETH is trading at $3,805 at the time of publication, dipping below the support level of $3,872. The king of altcoins has been trapped under $4,000 for nearly a week, reflecting waning momentum and tightening volatility in the broader cryptocurrency market.

Given the prevailing sell pressure and weak inflows, the price of Ethereum may drop further towards the support area of $3,742. If this level fails to hold, a deeper correction could follow, driving ETH down to $3,489. Such a decline would reinforce the current negative outlook.

ETH price analysis. Source: TradingView

However, if holders $ETH curb their selling and demand increases, ETH could rebound above $4,000. A critical break of this resistance could push prices towards $4,221, indicating renewed optimism and negating the prevailing negative formation.

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