Ethereum's $1.3B Sell-Off: Investors Lose Faith as Price Stalls
1min read Ethereum, the second-largest cryptocurrency by market capitalization, has been facing persistent challenges throughout the year. Despite multiple attempts to regain momentum, Ethereum has struggled to maintain a consistent upward trajectory, falling below $3,000 on several occasions. This lack of upward movement has led to investor caution, with many choosing to sell their holdings to secure profits.
Over the past week, more than 410,000 ETH, worth over $1.3 billion, has been sold. This spike in sell-offs is evident in the increased ETH supply on exchanges, indicating that investors are capitalizing on recent price action rather than holding for long-term gains. This rise in selling pressure highlights the waning confidence among market participants, who appear unconvinced of Ethereum's ability to sustain a meaningful recovery. The absence of strong upward price action has further fueled uncertainty, leading to a shift toward profit-taking behavior.
Ethereum's macro momentum presents a mixed outlook. The Network Value to Transaction (NVT) signal, a key metric for assessing valuation, has dropped to a 25-month low. This suggests that Ethereum is currently undervalued, which historically indicates a potential for recovery and a rally in the medium to long term. The undervaluation shown by the NVT signal could prevent Ethereum from experiencing sharp corrections, offering some hope for a reversal in sentiment. If this undervalued status attracts renewed interest, ETH may have a chance to stabilize and push beyond its current barriers.
Ethereum's price is currently holding above the support level at $3,303, following a failed attempt to breach the $3,530 barrier. Last week, the cryptocurrency dipped to $3,131, highlighting its ongoing struggle to maintain bullish momentum. Given the current conditions, Ethereum is likely to continue consolidating under the $3,530 resistance level. A failure to reclaim this critical barrier could see ETH falling back to $3,131, further weakening market confidence.
On the other hand, a successful breach of $3,530 could mark a turning point for Ethereum. Such a move would likely push the price toward $3,711, restoring investor confidence and invalidating the bearish outlook. However, sustained buying pressure and favorable market conditions will be critical for this scenario 
