Ethereum Sees Major Sell-Off as Price Fails to Break $4,000

Ethereum (ETH) continues to trade sideways after multiple failed attempts to break above the $4,000 mark. The lack of investor support has stalled its recovery momentum, keeping the second-largest cryptocurrency under pressure.

Market uncertainty is worsening as long-term holders (LTHs) appear to be moving toward selling their positions.

Ethereum Holders Move To Sell

On-chain data shows a sharp spike in Ethereums Coin Days Destroyed (CDD) metric over the last 24 hours. This indicates that long-term holders, or LTHs, have started to liquidate their holdings. The recent surge marks the largest increase in over two months, reflecting a decisive shift in investor sentiment.

Sponsored

Sponsored

LTHs are often viewed as the most influential group within the market due to their substantial holdings and long-term conviction. When they begin selling, it signals growing doubt about near-term performance. This selling activity can trigger broader market reactions, amplifying bearish momentum and putting additional pressure on Ethereums price stability.

Ethereum CDD. Source: Glassnode

Ethereums broader macro momentum appears weak as technical indicators show fading bullish sentiment. The Relative Strength Index (RSI) is hovering below the neutral 50.0 level, indicating that buyers are losing control. This suggests a lack of enthusiasm among investors, even as prices remain near key support levels.

An RSI reading below 50.0 typically signals sustained selling pressure and limited recovery potential. With broader market conditions also showing weakness, Ethereum could struggle to regain traction.

ETH Price RSI. Source: TradingViewETH Price Is Looking For A Surge

Ethereums price sits at $3,950 at the time of writing, stuck below the critical $4,000 resistance. The altcoin has been oscillating near $3,872, showing no clear directional bias.

The current indicators suggest that this consolidation phase above $3,742 support is likely to persist. However, if market conditions worsen and ETH slips below $3,742, a further decline toward $3,489 could follow. Such a move would confirm a bearish continuation pattern.