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The price of Ethereum faced renewed pressure after not being able to break out of a two-month trend. Eth tried to recover briefly last week, but quickly lost momentum,
Weak investor support pushed Ethereum lower, raising concerns about its ability to sustain a significant recovery in the near term.
Ethereum is losing the support of investors
On-chain data indicates lower profit levels for both long-term and short-term Ethereum holders. Both categories are now sitting at similar levels of profitability, indicating a decrease in confidence in the market. This convergence suggests that neither group is making significant profits at current price levels,
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The indicator mvrv Long / Short Difference fell below the zero line, reinforcing this trend. The reading indicates that neither long nor short holders will control unrealized gains. If the index continues to decline, profits for Ethereum holders may dominate in the short term, increasing downside risks and reflecting the fragility of investor confidence.
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The overall activity of Ethereum showed a clear weakness. Active addresses on the network fell to their lowest level in seven months. This decrease highlights a decline Participation of eth holderswhich indicates a decrease in interaction with the network during the current price weakness.
The decrease in activity indicates that investors see limited incentives to trade amid the settled price action. Declining network usage often reflects weak trust. Without renewed demand or catalyst-driven activity, Ethereum may find it difficult to regain momentum in the short term.
The ETH price is again below $3,000
ETH is trading at $2,929, marking its third drop this month below $3,000. An attempt to discover the price of Ethereum before last week did not support. This rejection reinforced the prevailing downtrend and showed weak buying interest at higher levels.
Negative indicators suggest that Ethereum may retest the support level at $2,762. This range has historically been critical ground. While there is downward pressure, a deeper pullback appears limited unless general market conditions deteriorate significantly.
A change in investor sentiment can change the outlook. It remains necessary to restore $3,000 as a support level. A sustained move above this level could allow eth to challenge $3,131. Such a recovery will invalidate the negative hypothesis and indicate a reversal of the downward trend.
