Ethereum News Today: Ethereum slides toward $3,000 as accumulation drops to 27.57% and bearish momentum grows

Ethereum faces mounting downward pressure as key on-chain indicators signal waning investor confidence and intensifying bearish momentum. The Holder Accumulation Ratio, a crucial metric reflecting the percentage of Ethereum addresses increasing their holdings, has fallen to 27.57%, marking a two-month low [1]. This decline suggests reduced buying activity and a lack of accumulation, which typically precedes further price weakness.

The bearish sentiment is further reinforced by the Elder-Ray Index, which currently stands at -342.73, showing expanding red histogram bars that highlight growing sell pressure [1]. This technical indicator confirms that sellers are dominating the market, pushing Ethereum’s price below critical resistance at $3,524 and trading near $3,457 [1].

Ethereum now faces immediate support at $3,067, with a break below this level potentially leading to a test of the $2,745 support zone [1]. These levels will be critical in determining the short-term trajectory of ETH. Analysts have noted that sustained weakness in accumulation behavior and continued selling pressure could push the asset below $3,000, especially if buyers fail to step in and reinvigorate demand [1].

On the other hand, a reversal in on-chain dynamics, such as a rebound in accumulation and increased buying volume, could shift Ethereum’s momentum higher. A successful break above $3,524 resistance could open the door for a move toward $3,859, although this scenario hinges on renewed investor confidence and stronger accumulation trends [1].

The Holder Accumulation Ratio is a vital on-chain metric that captures investor behavior by measuring the proportion of addresses actively increasing their ETH holdings [1]. A falling ratio, as seen currently, indicates that fewer investors are looking to accumulate, often preceding bearish price action. The Elder-Ray Index complements this by visually displaying the dominance of bears through its red histogram bars [1]. The recent expansion of these bars underscores that selling pressure is intensifying, overshadowing any short-term buying attempts.

Market participants are advised to closely monitor on-chain metrics and technical levels for early signals of a potential shift in Ethereum’s momentum. The current environment remains bearish, with ETH facing headwinds unless accumulation behavior improves significantly [1].

Source: [1] Ethereum Faces Potential Pullback Below $3,000 Amid Declining Accumulation and Bearish Momentum (https://en.coinotag.com/ethereum-faces-potential-pullback-below-3000-amid-declining-accumulation-and-bearish-momentum/)