Ethereum price struggling below $3,500 may lead to losses

Ethereum continues to face challenges as it struggles to reclaim the $3,500 level, a critical threshold to reach $4,000.

Deteriorating market conditions exacerbate the difficulties faced by the altcoin, reducing the likelihood of a near-term recovery and leaving investors uncertain about the price path.

Ethereum losses escalate

recently Ethereum network Transactions were dominated by losses rather than profits. Many investors panic sell their holdings, especially short-term ones, in an attempt to lock in gains or reinvest during declines. However, these actions often result in missed opportunities, which exacerbate the downturn.

This behavior highlights a broader lack of confidence among investors. The tendency to exit positions prematurely contributes to increased leverage VolatilityThis makes it difficult for Ethereum to regain its position and stabilize above crucial support levels.

The Ethereum Vitality Index has reached a two-year high, indicating significant activity among long-term holders (LTHs). This measure increases when LTHs liquidate their holdings, which is usually a bearish signal for price stability.

The continued rise in vitality despite falling prices suggests that LTHs are prioritizing profit-making over supporting the recovery. Such behavior undermines market confidence and imposes additional pressure on it Ethereum priceWhich may lead to further declines.

ETH Price Prediction: Breaking Resistance

Ethereum currently At $3,402, it held above the $3,327 support but failed to break the $3,524 resistance. This consolidation has lasted for about two weeks, reflecting the uncertainty in the market and the lack of strong bullish signals.

Given the prevailing conditions, Ethereum is likely to continue to consolidate or see a decline. A decline could push the altcoin to test the $3,000 level, increasing investors’ losses and delaying any significant recovery.

Alternatively, turning $3,524 into support could negate the bearish outlook. Achieving this achievement would pave the way for Access to Ethereum $3,721, allowing the cryptocurrency to recover losses and restore confidence among its holders.