Ethereum News Today: Ethereum Faces 25%–35% Price Drop Risk Amid Historic Sell Pressure

Ethereum (ETH) is currently under intense bearish pressure as it retests a critical resistance zone near $4,000, a level that has historically acted as a key distribution area since 2021. With selling pressure reaching historic levels, market analysts are warning of a potential 25%-35% price correction in the coming months [1]. The recent surge in sell-side activity is underscored by ETH's Net Taker Volume, which has dropped to -$418.8 million — the second-largest daily outflow on record — indicating aggressive profit-taking and investor capitulation [1].

According to CryptoQuant, this massive sell imbalance is a recurring feature at local tops and casts doubt on the sustainability of ETH's current price action. Traders sold 115,400 more ETH than they bought via market orders in a single day, reflecting urgent selling behavior rather than strategic order placement [1]. The Net Taker Volume metric, which measures the difference between buying and selling executed through market orders, has historically served as a leading indicator of price tops [1].

The price is now encountering a similar setup to what was observed in December 2024, when ETH traded near the same resistance level before collapsing by 66%. At that time, the Net Taker Volume turned sharply negative, and the weekly RSI moved out of overbought territory. A similar decline could now unfold, with ETH potentially retreating toward its 50-week and 200-week exponential moving averages (EMA), currently at $2,736 and $2,333, respectively [1]. A move to these levels would represent a 25%-35% decline from current prices [1].

The retesting of the $3,600–$4,000 resistance zone has also triggered renewed bearish sentiment, with many traders closely watching for confirmation of a breakdown. If ETH fails to establish a firm foothold above $3,800, the downward momentum is likely to persist. This scenario aligns with analyst forecasts that suggest a short-term correction is highly probable given the current market dynamics [2].

Despite the bearish signals, some traders have observed a recent rebound in ETH’s price, with the token briefly pushing above $3,820 and $3,880. However, analysts caution that these gains have yet to translate into a meaningful breakout, and the continued presence of strong resistance suggests the uptrend may lack sustainability [2]. Additionally, nearly $1 billion was withdrawn from U.S. Ethereum ETFs at the start of August, signaling a shift in investor behavior and further reinforcing the bearish narrative [7].

The broader crypto market is also exhibiting similar patterns, with Bitcoin (BTC) facing comparable resistance retesting. This correlation indicates that Ethereum’s price movement is part of a larger bearish trend affecting the entire crypto ecosystem [9]. While some remain optimistic about ETH’s long-term potential, the immediate outlook remains challenging.

As August 2025 progresses, traders and investors are closely monitoring ETH’s performance for signs of a reversal or continued decline. The next few weeks will be crucial in determining whether Ethereum can stabilize and resume a bullish trajectory or if the projected 25%-35% drop becomes a reality [6].

Sources:

[1] https://en.coinotag.com/ethereum-eth-faces-potential-25-35-decline-as-resistance-zone-retested-amid-historic-sell-pressure/

[2] https://www.facebook.com/groups/2373610969516780/posts/2834731230071416/

[6] https://www.bitget.com/price/jesus-2.0/price-prediction

[7] https://cryptodnes.bg/en/news/bitcoin/

[9] https://stocktwits.com/symbol/CFX.X