Ethereum continues to trade below the critical $3,000 level as selling pressure intensifies and fear dominates cryptocurrency market sentiment. The broader economic downturn has pushed ETH nearly 40% below August’s all-time high, raising concerns that the asset could enter a prolonged decline. Analysts who were once confident that the rally would continue are now changing their tune, warning that market structure, volatility and liquidity conditions are beginning to resemble early-stage bear market behavior.

At the same time, investor confidence is being further tested by novel on-chain activity showing huge holders reducing exposure. According to Lookonchain data, an Ethereum ICO participant sold another 20,000 ETH worth approximately $58.14 million via FalconX just a few hours ago.

With selling pressure mounting, derivatives sentiment weakening, and long-term holders starting to reduce positions, Ethereum is currently at a pivotal juncture. Bulls need to reclaim the $3,000 region to stabilize momentum, while bears say a deeper correction could occur if support continues to fall.

ICO whale sales add pressure as Ethereum waits for direction

According to Lookonchain, wallet the latest sale – identified as address 0x2eb0 – is not a mere holder. This Ethereum OG received 254,908 ETH during the ICO, paying just $79,000 at the time. At today’s prices, this allocation is worth approximately $757 million, highlighting the scale of unrealized gains that early adopters still hold. The recent sale of 20,000 ETH suggests that even long-term holders with significant profit cushions are starting to exit the coins, exacerbating an already volatile market environment.

This selling activity is particularly essential given the current sentiment. Ethereum has already fallen sharply from its highs, leverage has fallen in derivatives markets and retailer confidence has plummeted. When an early entrant at close to zero cost starts distributing, it sends a psychological signal that further deterioration is possible. Some analysts, however, say the selling may simply reflect portfolio rotation rather than long-term bearishness.

The coming days will be crucial as investors watch to see if Ethereum can stabilize and rebound, or if selling pressure increases. A rebound above $3,000 could revive optimism and restore momentum, while continued weakness could confirm a deeper downtrend for both ETH and the broader market.

Failure, feeble structure and breakable recovery attempt

Ethereum’s weekly chart shows a clear deterioration in the trend structure after a edged rejection from the $4,400 region and subsequent break below the $3,200 support zone. The selloff pushed ETH towards the mid-$2,700s before a modest rebound, but the price remains below key moving averages, signaling that momentum continues to favor sellers.

The 50-week moving average has flipped, while the 100-week and 200-week moving averages are currently overhead, creating layered resistance that could halt any near-term recovery attempts.

Volume during the decline increased noticeably, indicating vigorous distribution rather than passive drift. The last candle shows a slight bounce, but without a forceful raise in volume, suggesting hesitation and lack of conviction among buyers.

For Ethereum to regain its bullish structure, reclaiming the $3,000-$3,200 area is imperative as this zone has acted as key support earlier in the cycle and is now threatening to turn into resistance.

Featured image from ChatGPT, chart from TradingView.com