Ethereum's upward momentum comes to a halt... Is there a possibility of further increases?

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Ethereum [Photo: Shutterstock] Ethereum [Photo: Shutterstock]

Ethereum (ETH) rebounded 1.1% over the past week, but is facing strong selling pressure with a 3.29% drop on the daily chart.

According to a blockchain media outlet on the 28th ( local time ), while Ethereum's attempt to break out upwards failed amid this mixed trend, some investors still expect the possibility of a rebound.

Ethereum's recent adjustment stemmed from a decrease in accumulation by holders. The holder accumulation ratio, which indicates the rate of increase in wallets holding Ethereum, fell from 31.278 to 30.964, suggesting that investors have shifted to a wait-and-see attitude rather than additional purchases. The outflow from exchanges has also decreased, strengthening the short-term selling trend.

Strong selling pressure is also blocking the rise. Ethereum has a history of about 1.34 million ETH being bought in the $4,283-$4,326 range, and the recent uptrend also stopped in the $4,254-$4,395 range. Selling pressure intensified at this point, limiting further gains. However, not all indicators are negative.

The smart money index has been steadily rising since October 22. This means that large investors leading the market continue to buy Ethereum, raising expectations for a short-term rebound. However, if Ethereum falls below $3,918, further decline may be inevitable.

ETH-2.38%
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