The second-largest cryptocurrency by market capitalization, Ethereum (ETH), is struggling to regain ground after a persistent month-long downtrend that has kept its price movement restricted. Currently, the digital asset is testing a key resistance that could define its short-term course.
The cryptocurrency is trading at $3,604 at the time of writing, just below the critical $3,607 resistance mark. Ethereum has been struggling against this descending trendline for over 30 days, making this level a key breakout point.
However, two key indicators suggest that buyers are gaining strength. Potential support comes from long-term holders (LTHs), whose behavior often dictates market direction.
The “HODLer Net Position Change” indicator, which measures the balance between selling and accumulation, is shifting from negative to positive. This suggests that Ethereum’s LTHs are gradually reducing their selling activity. Historically, this group has played a crucial role in stabilizing prices.
Currently, Ethereum’s LTHs are showing the lowest sales volume in a month, reflecting growing confidence in the asset’s long-term strength. If this pattern continues, the reduced selling pressure could bolster overall market sentiment.
Optimism Returns to the ETH Market
Parallel to the holders’ action, Ethereum’s weighted sentiment indicator shows a sharp rise in the last 24 hours, hitting its highest point in two and a half months.
This sudden spike indicates that the broader market perception of ETH is improving. Investors, including both retail and institutional participants, are expressing renewed optimism toward Ethereum’s near-term outlook. Historically, such spikes in weighted sentiment have preceded short-term rallies.
If Ethereum tests this key resistance and manages to flip $3,607 into a new support floor, the next bullish target would be $3,802, followed by a potential move toward $3,950.
However, if investors begin taking profits at this point, Ethereum could slip below the $3,489 support level. A further decline toward $3,287 would invalidate the current bullish thesis, signaling renewed selling pressure and a possible extension of the ongoing downtrend.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.