Introduction
Ethereum [ETH], one of the most popular cryptocurrencies, has been struggling lately. Over the past month, its price has dropped by 18.61%. Many people are now wondering if Ethereum’s price will fall below the important $3,000 mark. Right now, Ethereum’s price is $3,062. This is 6.55% lower than it was just a day ago. Over the last week, its price has gone down by 12.67%. This steady decline is mostly because a lot of people are selling their Ethereum. This trend is especially noticeable on Binance, a popular platform for buying and selling cryptocurrencies.
Why Are People Selling Ethereum?
According to experts at CryptoQuant, ETH has been under heavy selling pressure on Binance. A key metric, the Taker Buy/Sell Ratio, has been negative for months. This means there have been more sell orders than buy orders.
The selling trend began in November 2024 and recently reached levels last seen in August 2023. Although buyers attempted to take control in December, sellers quickly regained dominance, driving ETH’s price lower. However, this selling activity could benefit long-term investors by offering an opportunity to buy ETH at discounted prices.
What Do the Charts Say About Ethereum’s Price?
Ethereum’s price charts show that sellers are in control of the market right now. Here’s what the data tells us:
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Chaikin Money Flow (CMF): This measures how much money is going in and out of ETH. The CMF is currently negative, at -0.08. This means more money is leaving ETH than coming in, which shows that sellers are dominating.
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Relative Strength Index (RSI): This measures whether ETH is overbought or oversold. Right now, ETH’s RSI is 28. This is close to being oversold, which means its price could keep dropping if the sellers remain in charge.
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Exchange Inflows: Over the past week, the amount of ETH being moved to exchanges has jumped from -50.77k to 103.77k. Usually, when more ETH moves onto exchanges, it means people are getting ready to sell.
Could a “Long Squeeze” Happen?
Another thing to watch out for is a “long squeeze.” ETH’s Estimated Leverage Ratio (ELR) has been rising over the past month. This means more traders are using borrowed money to bet on ETH. If the price keeps dropping, these traders could be forced to sell, which would push the price even lower.
What’s Next for Ethereum?
Right now, Ethereum is holding above an important support level of $3,030. If it stays above this level, it might bounce back and climb up to $3,300 or even higher. However, if ETH’s price falls below $3,000, it could drop further to around $2,810. The market is unpredictable, and it’s unclear whether ETH will recover or continue to decline. What happens next will depend on whether people keep selling or start buying again.
