Ethereum News Today: Ethereum Faces Sell Pressure as On-Chain Activity Rises 29.94%

Ethereum is experiencing a pivotal moment in its price trajectory as it contends with substantial sell pressure and signs of increasing on-chain activity. On August 7, 2025, Ethereum’s Net Taker Volume reached a stark -$418.8 million, indicating a severe imbalance in market orders with 116,000 more ETH sold than bought in a single day [1]. This metric, tracked by platforms such as CryptoQuant, often serves as an early indicator of market tops or turning points in price action [2].

Despite the bearish pressure, Ethereum has shown some resilience, maintaining its position around $3,643. This suggests that buyers are partially absorbing the selling pressure, providing temporary support to the price. The ability of bulls to push ETH back above the key $3,950 resistance level will be crucial in determining whether the asset can confirm a bullish breakout [3].

On-chain metrics, however, present a mixed picture. According to IntoTheBlock, Ethereum’s network activity is on the rise, with New Addresses increasing by 29.94% and Active Addresses up 3.17%. This surge in user activity could signal growing interest in the network and a potential foundation for price stability [4]. Such divergence between price action and on-chain trends may indicate underlying strength, especially if the increased activity persists and supports the price.

Meanwhile, on-chain valuation indicators reflect a nuanced outlook. The Network Value to Transactions (NVT) Ratio has spiked, suggesting that Ethereum’s market cap is outpacing its transaction volume, which may indicate short-term overvaluation. However, the MVRV Long/Short Difference remains above 12.36%, highlighting that long-term holders are still in profit territory, a sign of sustained confidence among seasoned investors [5].

The coming days will be critical for Ethereum as it faces a test of both on-chain strength and market sentiment. If the price manages to reclaim the $3,950 level while on-chain metrics continue to improve, it could signal a potential reversal in the bearish trend. However, should the selling pressure persist and buyers fail to absorb the outflows, further downward movement may become inevitable [6].

Market participants are closely monitoring Ethereum’s price behavior around the $3,600 level, which has historically acted as both a support and resistance zone. A breakdown below this level could trigger a deeper correction, while a successful defense may allow for renewed upward momentum [7].

As the situation evolves, the interplay between on-chain dynamics and broader market conditions will be key to Ethereum’s next move. The resilience of long-term holders, combined with signs of growing user activity, could provide a buffer against further declines. Whether this is enough to push Ethereum back toward bullish territory remains to be seen.

Source:

[1] https://en.coinotag.com/ethereums-price-faces-critical-test-amid-sell-pressure-and-rising-on-chain-activity/

[2] https://www.mitrade.com/insights/news/live-news/article-3-1014122-20250806

[3] https://coindcx.com/blog/price-predictions/ethereum-price-weekly/

[4] https://www.binance.com/en/square/news/ethereum-news

[7] https://m.economictimes.com/crypto-news-today-live-06-aug-2025/liveblog/123126163.cms