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Ethereum has struggled to regain momentum after a sharp 6% drop in the last 24 hours pushed the altcoin queen away from the critical $3,000 barrier.
This level represents psychological and technical resistance, and the latest rejection comes at a time when some of Ethereum’s most prominent holders are pulling back.
Low supply for Ethereum holders
Data from HODL Waves showed that Ethereum long-term holders (LTHs) have been offloading their assets since early November. Selling pressure increased around November 19, leading to a significant reduction in supply controlled by the 2- to 3-year group. Its share of the circulating supply fell from 8.51% to 7.33%, a clear sign that this group moved to offset losses and reduce risk exposure.
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Since long-term holders tend to be the most stable in the Ethereum ecosystem, selling has had a direct impact on price performance. Importantly, their positions have not recovered from the sale, creating a supply gap that new investors will need to fill if ETH is to regain bullish momentum.
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Fortunately, Ethereum is seeing encouraging signs of new demand. In the last seven days, the number of new addresses in the network increased by 13.4%, increasing from 141,650 to 160,690. This represents the strongest weekly jump in more than two and a half months and indicates renewed interest from investors despite the recent correction.
New addresses often translate into an influx of new capital into the market, which is crucial for Ethereum as it attempts to stabilize above key support levels. However, it is necessary to maintain this growth. If the influx of new holders slows down, the market may not be able to compensate for the absence of long-term participation.
The price of ETH has not found its direction
Ethereum is trading at $2,805 at the time of writing, reflecting a daily decline of 6%. The asset is sitting just below the $2,814 resistance level after its recent failed attempt to break the $3,000 barrier.
Depending on the current mood and structure of the market, Ethereum could stabilize and try a rebound, but a strong recovery will require continuous support from investors. Before long, Ethereum is likely to witness volatility Between $2,814 and $3,000 while looking for a destination.
If the upward momentum strengthens and new orders remain firm, … Ethereum could break Finally over the $3,000 barrier. A successful breakout will pave the way for a move towards $3,131 and possibly $3,287. This would invalidate the short-term bearish thesis.
