Ethereum's price is attempting to break through the long-standing $3,000 barrier once again, but the attempts are faltering. After a brief rise, ETH has returned to this support range, indicating that the market is still divided.
Optimistic momentum is slowly returning, but investors' impatience could hinder recovery if there is a failure to set a direction quickly.
Ethereum investors, potential ETH sell-off
The difference between long-term and short-term MVRV is approaching the neutral line, suggesting a shift in the dominance of profits between long-term holders (LTH) and short-term holders (STH). This indicator tracks whether long-term holders or short-term holders are realizing more profits. In Ethereum, falling below the neutral line indicates that short-term holders are holding most of the unrealized profits.
This change is important. STH historically sells off quickly at the first signs of weakness. If they begin to realize profits near $3,000, ETH may face new selling pressure. Such behavior has often halted previous recovery attempts and undermines sentiment despite widespread optimistic signals.
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The squeeze momentum indicator adds another layer of complexity. ETH is currently experiencing a squeeze buildup that occurs when volatility tightens and momentum compresses.
This typically occurs before strong directional moves. The histogram indicates that optimistic momentum is strengthening, and once the squeeze is released, price acceleration is likely to follow.
If optimistic momentum continues to grow during this period, ETH could benefit from volatility expansion in an upward direction. This setup occurred before rallies in previous cycles, but it will depend on market participation and whether buyers emerge at $3,000.
Ethereum is trading at $3,045 and remains above the important support level of $3,000. Over the past few days, ETH has been fiercely hovering around this area, indicating uncertainty among traders as market signals shift.
Mixed signals suggest that ETH may range near $3,000 in the short term. A decline triggered by STH profit-taking or broader market skepticism could push Ethereum down to $2,762 for stabilization.
However, if optimistic momentum is reinforced alongside positive macro conditions, ETH could aim for $3,287, surpassing $3,131. A clean break above these levels could invalidate bearish prospects and initiate a broader recovery phase.
