ETH tests key support as long-term holders sell $23 million

Ethereum is approaching a key inflection point as price activity weakens around key support levels, while on-chain data reveals changes in investor behavior. Recent trading has shown a clear rejection from the $2,350-$2,400 range, pushing it higher. $ETH The stock is entering a correction phase around $2,040.

Market structure is showing signs of weakness

The price structure currently reflects a short-term bearish trend. Lower highs continue to form after the recent peak, showing distribution. Furthermore, weak attempts at recovery indicate that buyers lack confidence in current levels.

The $2,020 to $2,030 zone now serves as immediate support. This level coincides with major Fibonacci retracement and recent trendline support. However, the price has already lost the 0.5 Fibonacci level around $2,090. This loss strengthens the bearish outlook.

Sellers may push if price falls below $2,020 $ETH Toward $1,950. Therefore, if the selling accelerates, there is a possibility of further decline towards $1,800.

On the positive side, $ETH Bullish momentum needs to be regained at $2,150. Furthermore, a move above $2,300 will confirm a broader continuation trend.

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Technical indicators also support caution. The supertrend indicator has reversed to the bearish side and is now acting as resistance. Additionally, momentum indicators indicate a weakening of selling pressure, but no reversal has been confirmed yet.

On-chain data shows mixed feelings

Derivatives data paint a more complex picture. Open interest continues to trend upward over time, reflecting increased participation. However, sharp spikes often coincide with increases in leverage and volatility.

Recent data shows that despite a slight pullback, open interest levels are rising. Therefore, traders are still aggressive, but cautious. This setup increases the risk of sudden liquidation if prices change rapidly.

Changes in sentiment can also be seen from spot market trends. Mid-year data shows consistent outflows, indicating continued selling pressure. However, recent activity suggests the outflow is slowing.

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Moreover, occasional spikes in inflows suggest opportunistic buying. Recent capital inflows have coincided with price declines, suggesting accumulation. Still, capital inflows remain inconsistent and sentiment remains fragile.

Whale activity increases sales pressure

Further fueling the market trend, Ethereum ICO participants received $23 million worth of $ETH recently. Investor transferred 18,500 $ETH Sold 11,552 to secondary wallet $ETH Approximately $2,027. This follows a long-term trend of profit taking by early investors. Nevertheless, large holders continue to hold significant positions, demonstrating sustained confidence in Ethereum’s long-term potential.

Ethereum technical outlook ($ETH)

Key levels remain well-defined as Ethereum approaches a key decision zone around $2,020.

Top level: The immediate resistance is between $2,150 and $2,200, and sellers have intervened repeatedly. A sustained break above this range could open the door to $2,300 and $2,400, which represent recent swing highs and major supply zones.

Lower price level: $2,020-$2,030 serves as immediate support and current reaction zone. Breakdown below this level could be pushed up $ETH Toward $1,930-$1,950, which is consistent with historically strong demand territory. Further weakness could expose $1,780-$1,800, which would be important macro support that could signal a broader trend change.

Upper limit of resistance: The $2,200 zone, reinforced by the Fibonacci confluence and dynamic resistance indicators, remains a level that bulls must recover to regain momentum. Without this, ascent attempts may continue to fail.

The technical structure suggests that Ethereum is moving out of the range and into a potential short-term downtrend. Additionally, the price action shows compression after forming a lower high, indicating a distribution phase. This setup is often done prior to an increase in volatility after a definitive break of support or resistance.

Will Ethereum rise further?

Ethereum’s near-term outlook largely depends on whether buyers can defend the $2,020 support zone. If this level can be maintained, $ETH It will attempt to recover towards $2,150 and possibly retest $2,300. Additionally, improving spot inflows and stabilizing momentum could support modest upside price movements.

However, if this support cannot be sustained, the bearish trend is likely to continue. In that case, the price could fall towards $1,950 and losses could widen towards $1,800. Additionally, recent profit-taking by long-term holders has added to the pressure, while rising open interest suggests volatility could accelerate moves in either direction.

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For now, Ethereum remains at a critical inflection point. Therefore, the next move will depend on whether demand strengthens at current levels or whether sellers regain control and prompt a deeper correction.