Ethereum (ETH) has not shown much price volatility in the past two weeks despite the broader cryptocurrency market showing upward momentum.
The stagnation in ETH price occurs at a time when selling activity has increased. These factors indicate a cautious short-term outlook for Ethereum as the week continues.
Ethereum Investors Protect Their Profits
Recent data shows significant selling pressure on Ethereum. In the past 48 hours, investors have sold over 225,779 ETH tokens. This volume is equivalent to a supply worth approximately $576 million, reflecting a rapid selling rate.
Such widespread selling indicates a decrease in investor confidence. Many seem to be taking profits amid doubts about further price increases. This behavior typically signals a short-term shift towards risk aversion.
Ethereum Exchange Position Change. Source: glassnodeTechnical indicators also contribute to the negative sentiment around Ethereum. The Moving Average Convergence Divergence (MACD) shows a downward price crossover after nearly seven weeks of upward momentum. This change often precedes a price decline or increased volatility.
Loss of upward momentum weakens Ethereum's price support. Without new buying interest, ETH may face additional downward pressure as traders adjust positions based on technical signals.
Ethereum MACD. Source: TradingViewETH Price is Stuck
Ethereum is currently trading near $2,553, maintaining an important support level around $2,500. The "king" of altcoins has maintained this threshold for some time, but the ability to hold this level is being challenged.
If downward pressure continues, Ethereum may break below $2,500 and move lower towards the next support at $2,344. However, if buying interest returns, ETH could consolidate between $2,500 and the resistance level of $2,654 for a while.
Ethereum Price Analysis. Source: TradingViewTo change the negative short-term outlook, Ethereum must overcome the near resistance of $2,654. A sustainable move beyond this point could push the price to $2,814, reviving investor optimism and supporting further price increases.
