Ethereum is facing renewed downward pressure as its price slipped below the critical $3,000 level, leaving the altcoin stuck beneath a major psychological barrier.
However, this drop has failed to trigger fear across the market, leading to major buying from ETH holders who appear increasingly bullish about short-term price stability.
Ethereum Holders Buy Heavily
The balance of Ethereum held on exchanges has witnessed a dramatic decline this week. ETH supply on trading platforms fell from 2.77 million ETH to 1.41 million ETH — a staggering 136 million ETH drop. At current prices, this represents nearly $4 billion in buying.
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Such a massive outflow reflects confidence from investors who chose to accumulate as Ethereum fell below $3,000, awaiting recovery While exchange outflows sometimes panic selling, the pace and timing of this drop suggest accumulation rather than pessimistic repositioning.
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Ethereum Exchange Balance. Source: SantimentMacroeconomic momentum has weakened further with a major technical indicator flashing red. Ethereum’s exponential moving averages formed a Death Cross this week — its first in more than nine months. This crossover ends the Golden Cross structure that began in July, which had supported Ethereum’s strength during the summer rally.
Historically, a Death Cross on Ethereum has paved the way for short-term consolidation or minor relief rallies, followed by renewed declines. This pattern increases the probability that ETH may trade sideways before encountering additional downward pressure.
ETH Death Cross. Source: TradingViewETH Price May See Volatility
Ethereum is currently priced at $3,035, attempting to flip the crucial $3,000 resistance level. Losing this psychological threshold triggered the wave of $4 billion in buying as investors consider this to be a bottom for ETH and are accumulating to capitalize on the eventual gains.
If broader conditions stabilize, ETH could regain bullish momentum. A decisive reclaim of $3,000 would open the path toward $3,131 and potentially $3,287. This would help Ethereum continue its recovery and rebuild confidence among holders.
ETH Price Analysis. Source: TradingViewOn the other hand, if the market conditions worsen, ETH will likely consolidate under $3,000 and attempt to hold above support at $2,814 or $2,681. If market conditions worsen or investors continue to sell, Ethereum could break below $2,681 and slide toward $2,606 or lower, invalidating the bullish thesis.
Source: https://beincrypto.com/ethereum-selling-triggers-death-cross/
