Ethereum’s price is testing the critical $3,600–$4,000 resistance zone, triggering alarms over a potential market reversal fueled by significant bearish metrics. This price range has historically acted as a formidable barrier since 2021, with current indicators suggesting intensified selling momentum could spark a sharp downturn.
Market data reveals ETH recently recorded a Net Taker Volume of -$418.8 million, marking the second-largest daily sell imbalance in its history. This substantial negative flow indicates overwhelming selling pressure as market orders absorbed 115,400 more ETH sold than purchased during the period.
The current technical setup mirrors conditions observed in December 2024 when similarly negative Net Taker Volume preceded a significant price decline. If resistance holds, Ethereum risks falling toward key support levels at the 50-week Exponential Moving Average ($2,736) and 200-week EMA ($2,333), representing potential drops of 25%–35% from current valuation levels.
This convergence of heavy sell-side activity and historical resistance raises concerns of trader capitulation or widespread profit-taking. Market participants are closely monitoring whether Ethereum can breach this decisive threshold or face a substantial corrective phase in line with technical projections.