Ethereum’s Price Faces Critical Test Amid Sell Pressure and Rising On-Chain Activity

Key Points

1. Ethereum’s Net Taker Volume recently hit -$418.8 million, indicating extreme selling pressure with 116,000 more ETH sold than bought in a single day.

2. Despite the sell-off, ETH remains near $3,643, showing some buyer absorption and potential for stabilization.

3. Rising network activity, including a 29.94% surge in New Addresses and a 3.17% climb in Active Addresses, suggests potential for price stability and recovery.

4. The MVRV Long/Short Difference remains above 12.36%, indicating long-term holder confidence despite signs of overvaluation.

5. Ethereum faces a critical test as it must reclaim the $3,950 resistance level to confirm a bullish breakout, with long-term support potentially aiding resilience.