Ethereum is facing renewed bearish pressure as its price continues to fall, due in part to whale accumulation suspensions.
Slower buying from major shareholders weakened market support at a time when broader conditions were already unfavorable. The decline could intensify if long-term holders start selling.
Ethereum holders appear to be in crisis
Whales appear to be losing confidence in Ethereum’s short-term recovery. Addresses holding 1 million to 10 million ETH were actively accumulating at the beginning of the month. As ETH continues to fall, that trend has now paused, indicating hesitation among the network’s most influential participants.
This shift suggests less confidence in the ability of assets to recover quickly. Whale accumulation is often the primary driver of upward momentum, and the absence of sustained purchases creates further vulnerability. Without new support from these large holders, Ethereum may struggle to stabilize.
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Ethereum Whale Holdings. Source: Santiment
Macro indicators are reinforcing this alarm. The MVRV long/short spread has fallen to a four-month low, highlighting rising tensions between both long-term and short-term holders. This indicator shows whether long-term holders have gained compared to short-term holders, and a positive value usually reflects strong confidence in LTH.
However, a decline in this indicator indicates that long-term holders are losing profitability. If this trend becomes stronger, there could be a sell-off from long-term investors looking to protect their remaining profits. Such selling pressure will weigh heavily on Ethereum and accelerate its current downtrend.
Ethereum MVRV long/short difference. Source: Santiment
ETH price may continue to fall
Ethereum price fell 7.4% in the past 24 hours, weighed down by weak macro conditions and declining investor confidence. These factors indicate that the downtrend will continue unless sentiment changes significantly.
ETH has fallen below $3,001 for the first time in over four months and is currently trading at $2,801. With the loss of support at $2,814, the next downside target is $2,681. A break below this level could send the price towards $2,606, suggesting further weakness.
ETH price analysis. Source: TradingView
Ethereum could start to recover if market conditions improve and long-term holders avoid selling. A rebound towards $3,000 would be the first sign of strength. Breaking this barrier could allow ETH to rise above $3,131. This would invalidate the bearish outlook and restore confidence.
Where is the Ethereum whale accumulation as the price drops below $3,000? The post appeared first on BeInCrypto.
