Ethereum Price Subdued as Investors Sell $2.4 Billion Worth of ETH

Ethereum’s (ETH) price is facing the bearishness of a key group of investors that are usually considered the rock.

Their actions have driven the altcoin’s price lower than the retail investors could, who are still likely optimistic.

Ethereum Investors Sell

Ethereum’s price is facing a drawdown at the moment. This is the result of the broader market’s bearishness as well as a more timid-than-expected reaction following the launch of spot ETH ETFs.

The situation is further complicated by mid- and long-term holders who have chosen to sell their assets for profit. These investors typically help maintain price stability even in bearish markets. However, their decision to sell can halt even the most promising bullish trends.

This is what happened with ETH as well. In the last seven days about 740,000 ETH worth close to $2.4 billion have been sold off by investors. This supply was last active between 6 months and two years.

Ethereum Mid and Long-Term Holdings. Source:  Glassnode

This development exacerbated the decline, but it had little impact on retail investors. According to the Net Unrealized Profit/Loss (NUPL) indicator, these investors remain optimistic about a potential price increase.

The indicator is currently in the Optimism zone, which is a sign that ETH holders expect gains over the coming trading sessions.

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Ethereum NUPL. Source:  Glassnode

 Whether or not this optimism is strong enough to pull Ethereum’s price up is still questionable.

ETH Price Prediction: Recovery Becomes Difficult

Ethereum’s price is strongly holding above the 23.6% Fibonacci Retracement line, also known as the bear market support floor. Living up to its name, the support is preventing further decline. However, the skepticism is preventing a recovery as well.

Stuck under the 38.2% Fib line at $3,304, ETH is attempting to breach through which could happen. However, a rally beyond this, potentially breaching the 50% Fib line at $3,455 could be difficult.

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Ethereum Price Analysis. Source:  TradingView

However, if the selling and broader market bearishness do not go down, a drawdown to the 23.6% Fib line and a slip below $3,118 is possible. This would invalidate the neutral-bullish thesis.