Ethereum’s price remains under pressure, with the altcoin king struggling to find strong support from investors. After weeks of sideways movement, ETH appears to be in a consolidation phase as optimism fades.
The lack of recovery momentum has raised concerns that Ethereum could soon retest the lows if sentiment does not improve.
Ethereum holders face losses
The Net Unrealized Gain and Loss (NUPL) indicator has fallen into the surrender zone, a range that historically precedes Ethereum’s short-term rebound. When investors capitulate, prices often reach oversold levels, creating the conditions for a temporary recovery market.
Short-term holders are known to react quickly to price changes and tend to resist selling at a loss. This action could trigger a slow recovery as short-term holders aim to push prices higher before taking profits. Ethereum has experienced two similar short-term rallies under comparable circumstances this month. If this pattern repeats, the network could witness a temporary price increase before broader market trends regain influence again.
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Ethereum STH NUPL.Source: Glassnode
From a macro perspective, Ethereum’s weighted sentiment has declined sharply, indicating a growing bearish trend among investors. The index is at its lowest level in nine months and the lowest level since February. Such negative sentiment typically reflects fatigue in buying activity and traders’ reluctance to enter new long positions.
While this pessimism may be short-lived, an extended period of bearishness could increase selling pressure and undermine any short-term rebound. If sentiment does not improve soon, Ethereum may find it more difficult to maintain key support levels.
Ethereum weighted sentiment. Source: Santiment
ETH price is within range
As of this writing, Ethereum is trading at $3,846, just above the support level at $3,802. The king of altcoins is likely to remain range-bound as market conditions indicate limited volatility.
Ethereum price is currently fluctuating between $4,154 and $3,802. This consolidation range is likely to continue in the coming sessions, and if short-term momentum returns, ETH could test resistance again.
ETH price analysis. Source: TradingView
However, if the bearish situation strengthens further and Ethereum loses the support at $3,802, further declines could follow. A break below this level could cause the price to fall below $3,742 and towards $3,500, invalidating the bullish theory and signaling further weakness in the market going forward.
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