Ethereum has been trading sideways over the past week, struggling to break out of the negative trend that cut its weeks-long rally short.
Summary
- Ethereum is struggling to climb above $3,600 amid mounting sell pressure.
- Polymarket traders see a 54% chance of a new ETH all-time high in 2024
- Growing institutional interest in Ethereum is fueling bullish sentiment.
Trading slightly over $3,617 at the time of writing, Ethereum (ETH) is down roughly 1.4% in the past 24 hours and 4.4% on the week. The decline marks a U-turn from its recent 50% climb, which stalled just before the $4,000 mark many had hoped for after topping out near $3,900.
The pullback in price isn’t random, and comes as an aggressive wave of selling floods the market.
Everyone’s dumping ETH
In an August 6 analysis, CryptoQuant researcher Maartum highlighted that sellers are offloading way more ETH than buyers are willing to absorb, inflicting bearish momentum. The sharp spike in sell pressure saw Net Taker Volume for ETH, the indicator that measures the difference between market buy orders and market sell orders, drop to -$418.8 million in a single day.
This means sellers unloaded 115,400 more ETH than buyers took in at market price, the second-largest daily sell imbalance on record. It is a sign that short-term sentiment has flipped bearish, with traders rushing to exit positions faster than demand can keep up.
But it is not just traders. Ether ETF issuers like BlackRock and Fidelity have also been selling in size, especially as the funds’ outflows continue to pile up. crypto.news reported earlier that BlackRock deposited $372 million worth of ETH into Coinbase Prime, a step often linked to liquidation.
Fidelity made a similar move, selling 14,978 ETH, worth $53.6 million, and adding to the pressure. Blockchain tracker Lookonchain also recently flagged several large whale dumps, with nearly $70 million sold in the past 24 hours alone.
Despite the selling, market optimism hasn’t completely collapsed.
Market still betting on ETH ATH
On Polymarket, traders are still waging a 54% chance that Ethereum will set a new all-time high before the end of the year. The odds are up 12% in the last 24 hours, suggesting that even the recent wave of selling has not deterred investor confidence.
Fueling the optimism is growing institutional interest in ETH. Nearly 17 public companies now hold Ethereum on their balance sheets, with combined holdings worth around $6 billion. Most of these firms have signaled long-term conviction, adding weight to the view that the trend could extend and support price upside.
On the technical side, ETH is holding above $3,600 and still trading above key moving averages. The 20-day EMA at $3,546 is acting as immediate support, but momentum is clearly cooling. The RSI has pulled back from overbought levels and is now drifting below 60, showing that bullish pressure is easing.
If ETH loses the 20-day, the next support zone sits around the 50-day EMA at $3,210, which previously acted as a consolidation zone in July. A bounce from here could reignite bullish momentum, but if selling continues, the asset’s price may slide further.
