Ethereum Struggles Below $3,000 as Long-Term Holders Cash Out

Ethereum is facing difficulty reclaiming the $3,000 level following a 6% drop, encountering resistance at this psychological and technical barrier. This struggle coincides with long-term holders (LTHs), specifically the 2-to-3-year cohort, offloading significant supply since early November, reducing their share from 8.51% to 7.33%. Since LTHs are stable participants, their selling has directly impacted price performance, creating a supply gap that new investors must fill for upward momentum to resume.

Conversely, there are encouraging signs of new demand, with new addresses on the network surging 13.4% over the past seven days, marking the strongest weekly jump in over two months. While this signals fresh investor interest, sustaining this influx is crucial to offset the reduced LTH participation.

At the time of writing, ETH trades around $2,805. The asset is expected to fluctuate between $2,814 and $3,000 in the near term. A strong recovery above $3,000, supported by consistent new demand, could lead to tests of $3,131 and $3,287, invalidating the short-term bearish outlook.

(Source：BeInCrypto)