The price of Ethereum is once again attempting to break free from the long-standing 3,000 USD barrier, but the attempt has stalled. After briefly rising, ETH fell back towards this support level, indicating that the market is divided.
Even though the positive trend is slowly returning, investor impatience may affect the recovery if a clear direction does not emerge soon.
Ethereum investors may sell their ETH
MVRV Long/Short Difference is approaching the neutral line, signaling a possible shift in profit dominance between long-term and short-term holders. This measurement shows whether long-term or short-term holders are realizing more profits. For Ethereum, a fall below the neutral line would mean that short-term holders have the majority of unrealized profits.
This change is significant as short-term holders historically sell quickly at the first sign of weakness. If they start taking profits near 3,000 USD, ETH could face increased selling pressure. This behavior has often hindered previous recovery attempts, making sentiment fragile despite broader positive signals.
Do you want more token insights like this? Subscribe to editor Harsh Notariya's daily crypto newsletter here.
The squeeze momentum indicator adds another layer of complexity. ETH is currently experiencing a squeeze build-up, which occurs when volatility tightens and momentum compresses.
This usually precedes a strong move in either direction. The histogram shows that positive momentum is strengthening, indicating that when the 'squeeze' is released, price acceleration may follow.
If the positive momentum continues to grow during this time, ETH may benefit from an upward volatility expansion. This situation has preceded rallies in previous cycles, but confirmation depends on market participation and whether buyers step in at 3,000 USD.
Ethereum is currently trading at 3,045 USD and remains above the critical 3,000 USD support level. Over the past few days, ETH has stayed close to this zone, indicating indecision among traders as market signals change.
The mixed signals suggest that ETH may continue to move sideways near 3,000 USD in the short term. A breakdown caused by short-term holders taking profits or greater market skepticism could push Ethereum down to 2,762 USD before it stabilizes.
But if the positive momentum strengthens along with favorable macro conditions, ETH could climb past 3,131 USD and target 3,287 USD. A clear breakout above these levels would invalidate the negative outlook and pave the way for a broader recovery phase.
