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The price of the leading altcoin, Ethereum, continues to drift further from the $4,000 mark. Recent profit-taking and cautious sentiment weighing heavily on market momentum have caused $ETH price to decline significantly from its July peak of $3,941.
On-chain and technical indicators now suggest a growing likelihood of a pullback below $3,000 in the coming weeks.
$ETH Faces Headwinds as Accumulation Dips and Bearish Signals Mount
Glassnode data shows that Ethereum’s Holder Accumulation Ratio closed at a two-month low of 27.57% on Saturday, a sign that investors are no longer aggressively adding to their $ETH holdings.
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According to the on-chain data provider, this metric measures the percentage of existing addresses increasing their $ETH balances relative to those reducing or maintaining theirs.
When it climbs, it indicates accumulation behavior — typically seen during bullish phases when confidence in future price growth is high.
On the other hand, a declining ratio, such as the one currently observed, signals weakening conviction and a reluctance to buy the dip. With fewer holders accumulating, $ETH lacks the buy-side pressure typically needed to sustain a rebound.
Furthermore, $ETH’s Elder-Ray Index has posted red histogram bars over the past three trading sessions, confirming that the bears have sidelined the bulls. As of this writing, it stands at -342.73.
The indicator gauges the strength of bulls and bears in the market. When it prints green histogram bars, it indicates strong buyer dominance and rising upward momentum.
Conversely, as with $ETH, bearish momentum grows when it returns red bars whose sizes continue to enlarge. These red bars indicate that selling pressure is not just present but increasing as the day passes.
$ETH Eyes $2,745 as Buyers Step Back
$ETH currently trades at $3,457, just below a key resistance level formed at $3,524. If accumulation weakens, bearish momentum could drag the price down toward the next major support at $3,067.
Should this support floor give way, $ETH may slip further to test the $2,745 zone.
Converesly, a renewed wave of demand could shift sentiment and fuel a recovery. In that case, $ETH might make another attempt to break above the $3,524 resistance. A successful breakout could pave the way for an extended rally toward the $3,859 level.