Ethereum has seen an explosive price rally over the past week, gaining over 22% to touch a high near $3,856. However, the recent 24-hour dip of 4.18% has raised questions about short-term momentum. While there are jitters, spurred by regulatory uncertainty and ETF outflows, Ethereum’s fundamentals and onchain data suggest this could be a healthy cooldown rather than a trend reversal. Curious about ETH’s next milestone? Read this short-term ETH price analysis for targets.

Strategic Holding Amid Sell Pressure

According to Glassnode’s Cost Basis Distribution Heatmap, a large cohort of ETH investors who accumulated around the $2,520 level have begun booking profits. This is evidenced by the fading red bands from early July. Despite this, nearly 2 million ETH from this group remains unmoved. The platform reveals three critical insights:

1. Holders are locking in partial gains, not exiting entirely.
   
2. The remaining position shows continued belief in further upside.
   
3. New buyers are absorbing the selling pressure, suggesting growing demand.

This distribution behavior underlines a maturing investor base using rallies to rebalance, while also trusting ETH’s medium-term outlook.

Ethereum Price Analysis

Ethereum price is currently changing hands at $3,635, with a -4.18% pullback in the last 24 hours. The RSI has dipped from the overbought zone of 70 to 51, indicating waning momentum. The price has also broken below the 20-period EMA on the 4-hour chart, a sign of short-term bearish pressure.

Key support is seen at $3,550, a potential bounce zone. A failure here may expose ETH to further downside toward the $3,525 level. On the upside, the Ethereum price needs to reclaim the resistance at $3,870 for any hopes of retesting the $4,096 mark.

FAQs