Ethereum is attempting to recover after facing a month-long sustained downtrend with price volatility remaining limited. The second-largest cryptocurrency by market capitalization is currently testing a key resistance level.
However, potential support from long-term holders (LTH) could help ETH break out of this bearish phase.
Saving Ethereum holders
The HODLer Net Position Change indicator, which measures the balance between selling and accumulating, has turned from falling to rising. This suggests that long-term Ethereum holders are gradually reducing their sales activity. Historically, this group has played an important role in price stability, as its actions often determine the direction of the market.
Currently, Ethereum LTH is seeing its lowest monthly sales volume, reflecting growing confidence in the asset's long-term strength. If this pattern continues, the decline in selling could potentially strengthen overall market sentiment.
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Ethereum HODLer net position change. Source: Glassnode
Ethereum’s weighted sentiment indicator has risen sharply over the past 24 hours, hitting a two-and-a-half-month high. This sudden spike indicates that the market's broader perception of ETH is improving. Investors, including both individual and institutional participants, are expressing renewed optimism about Ethereum's near-term prospects.
The increase in positive sentiment suggests that confidence is returning across multiple investor groups. Historically, such weighted spikes in sentiment have preceded short-term gains. If optimism remains, buying momentum could increase and help Ethereum rally above the immediate resistance.
Ethereum weighted sentiment. Source: Santiment
ETH price needs a boost
Ethereum price is at $3,604 at the time of writing, hovering just below the key resistance level at $3,607. The altcoin king has been struggling with a downtrend line for over a month, making this level a key breakout point.
If Ethereum is able to convert support at $3,607, the next target would be $3,802 and then a possible move towards $3,950. Sustained support from LTH and rising sentiment could fuel this upward trajectory and allow ETH to escape bearish control.
ETH price analysis. Source: TradingView
However, if investors start taking profits, Ethereum could fall below the $3,489 support level. A further decline towards $3,287 will invalidate our bullish theory. This could indicate renewed selling pressure and prolong the ongoing downtrend.
The article Ethereum stalls below $3,607 resistance due to slowing sales among long-term holders was first published on BeInCrypto.
