Ethereum is attempting to recover after facing a persistent month-long downtrend that has kept its price movement restricted. The second-largest cryptocurrency by market capitalization is now testing a key resistance level.
However, the potential support from long-term holders (LTHs) could help ETH break through this bearish phase.
Ethereum Holders To The Rescue
The HODLer Net Position Change indicator, which measures the balance between selling and accumulation, is shifting from decline to incline. This suggests that Ethereum’s long-term holders are gradually reducing their selling activity. Historically, this group has played a crucial role in stabilizing prices, as its behavior often dictates market direction.
Currently, Ethereum’s LTHs are showing the lowest selling volume in a month, reflecting growing confidence in the asset’s long-term strength. If this pattern continues, their reduced selling could bolster overall market sentiment.
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Ethereum HODLer Net Position Change. Source: Glassnode
Ethereum’s weighted sentiment indicator shows a sharp rise over the past 24 hours, hitting a two-and-a-half-month high. This sudden spike indicates that the broader market perception around ETH is improving. Investors, including both retail and institutional participants, are expressing renewed optimism toward Ethereum’s near-term outlook.
The increase in positive sentiment suggests that confidence is returning across multiple investor groups. Historically, such spikes in weighted sentiment have preceded short-term rallies. If the optimism remains steady, it could strengthen buying momentum and help Ethereum climb beyond its immediate resistance levels.
Ethereum Weighted Sentiment. Source: Santiment
ETH Price Needs A Push
Ethereum’s price stands at $3,604 at the time of writing, hovering just below the critical $3,607 resistance mark. The altcoin king has been struggling against its descending trendline for over a month, making this level a key breakout point.
If Ethereum can flip $3,607 into support, the next target would be $3,802, followed by a potential move toward $3,950. Sustained support from LTHs and rising sentiment could fuel this upward trajectory, allowing ETH to escape its bearish grip.
ETH Price Analysis. Source: TradingView
However, if investors begin taking profits, Ethereum could slip below the $3,489 support level. A further decline toward $3,287 would invalidate the bullish thesis. This would signal renewed selling pressure and extend the ongoing downtrend.
