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Main takeaways:
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Long-term investors sold 45,000 ETH daily, increasing the selling pressure.
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Ether’s 50-week EMA is targeting a breakout of the $2,500 bear flag.
the ether (ETH) fall toward $3,000 on Friday was preceded by a significant amount of unloading by long-term holders, which some analysts say may lead to a deeper price correction.
Long-term holders unload
Long-term holders of Ether, entities that hold ETH (ETH) for more than 155 days, they intensified their selling activity as the price fell below key support levels.
Analyzing the ETH spent volume by age, using a 90-day moving average, Glassnode analysts he said that 45,000 ETH, worth about $140 million, will leave the wallets for three to 10 years every day.
Related: The likelihood of Ether turning bullish before the end of 2025 depends on 4 critical factors
Glassnode wrote:
“This marks the highest level of spending by experienced investors since February 2021.”
This aligns with a rises in spot Ethereum exchange-traded funds (ETF) outflows, which also suppresses the ETH price. These investment products recorded $259 million in net inflows Thursday, marking their worst day since Oct. 10, according to data by SoSoValue.
This marked the fourth consecutive day of flows for the Ethereum ETF, as the end of the 43-day US government shutdown failed to whet investor appetite.
A cumulative net outflow of $1.42 billion from Ethereum ETFs since the first signs of November strong institutional selling pressurefueling fears of a deeper correction.
Ethereum onchain signals declining data demand
Onchain activity over the past seven days paints a worrying picture. While Ethereum continues to lead its competitors, securing around 56% of the market. total value closed (TVL), this metric has fallen by 21% in the last 30 days, according to DefiLlama.
Even more concerning is the drop in network fees, which reflects the decrease in demand for blockspace, which reinforces the weakness of Ether’s price around $3,000.
Ethereum fees in the last 30 days fell to $27.54 million on Friday, representing a decrease of 42%. Solana fees decreased by only 9.8% while BNB Chain revenues decreased by 45%, reinforcing the bearishness in the market.
This may continue to pressure the price of Ether in the coming weeks, especially when coupled fea of the growing marketr, which returned to the levels seen last during the sale led by US President Donald Trump’s tariff announcements in April.
The ETH price flag is targeting $2,500
Many analysts warn that the current downward trend could accelerate unless a clear bullish shift occurs, possibly adding pressure on day traders and small holders.
“Ethereum Loses 50-Week EMA, Key Macro Support”, he said analyst Bitcoinsensus in a post on Friday X, refer to the level of $ 3,350.
Past breakdowns have triggered major downside moves, with the latest resulting in a 60% drop to $1,380 from $3,400 between late January and early April.
Bitcoinsensus added:
“The trend remains bearish unless the price regains this level quickly.”
The price action of Ether in the daily time frame has validated a bear flag it once broke below $3,450, coinciding with the 200-day SMA and the lower boundary of a bear flag.
The next major support lies at the psychological level of $3,000, which the bulls will have to defend aggressively.
Losing this level would clear the way for a new downward leg towards the model’s measured target at $2,280, or a 23% drop from the current level.
As Cointelegraph reported$3,000 remains a key support zone for the ETH/USD pair, and holding it is crucial to avoid further losses.
This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision.
