The Ethereum (ETH) market is experiencing a tug-of-war as prices continue to fluctuate within a narrow range, despite the clear recovery of the crypto market in general in recent weeks. However, behind this temporary stability is a notable wave of selling from ETH investors - a potentially risky signal for the short-term price trend.

Large-scale profit-taking wave

According to the latest data from on-chain analytics platform Glassnode, over 225,779 ETH have been sold in the past 48 hours alone, equivalent to about $576 million at market price. This is one of the strongest selling waves in recent times and shows that defensive sentiment is growing among the investor community.

Such widespread selling reflects a profit-taking trend after a long rally. Many investors seem to be skeptical about ETH’s ability to continue rising in the short term, choosing to preserve profits. This poses a potential risk to ETH prices as outflows could create further downward pressure.

Technical signals turn negative

Technical analysis also shows many less positive signs. The MACD indicator – which is used to measure price momentum – recorded a bearish crossover after nearly seven weeks of an uptrend. This is usually seen as an early warning of a possible price drop or sharp negative movement.

Meanwhile, weak buying momentum makes it difficult for Ethereum to maintain important support levels. Failure to attract more buying pressure from new investors could push ETH into a deeper correction.

ETH Price Under Pressure

Currently, Ethereum is trading around $2,535, below the psychological support level at $2,500. ETH even fell below $2,344 at one point, a key technical level.

If the downtrend continues to prevail, ETH could see further corrections in the short term. However, if buying pressure returns, Ethereum could potentially reclaim the consolidation zone between $2,500 and $2,654.

To change the negative outlook, ETH needs to break above the $2,654 resistance. At that point, the price could head towards $2,814, a new high that could provide investors with optimism and pave the way for a stronger recovery.

Ethereum is facing significant challenges in the short term, with both technical and sentiment factors showing negative signals. Strong capital outflows and struggles at support levels are making ETH vulnerable to selling pressure. In that context, price movements in the coming days will depend heavily on ETH's ability to attract demand again and overcome important resistance levels.