While Ethereum has tried several times, it is just struggling to retain upward momentum. Its price has fallen recently to $3,131, thus making more investors skeptical. Therefore, most investors have opted to sell and secure profits rather than holding for a long period.
The surge in sell-offs is evident in the rising ETH supply on exchanges, signaling reduced confidence in a near-term recovery. Market metrics also paint a mixed picture. The Ethereum NVT signal has fallen to its lowest level in over two years, which technically suggests that it is undervalued. This metric has signaled recovery in the past, so it is at least some good news for investors.
Presently, Ethereum manages to cling above $3,303, but analysts believe its ability to break the resistance above $3,530 will see it start gaining bullish momentum. Unless ETH manages to breach this level, then it risks backsliding into $3,131, further depressing investor confidence. Conversely, a successful breach might push prices toward $3,711, restoring investor optimism.
The path forward for Ethereum remains uncertain. Sustained buying interest and favorable market conditions will be crucial for a turnaround, as the cryptocurrency navigates its ongoing challenges.
