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Ethereum’s Volatility Slows as ETH Rejects $4,000: Will Holders Trigger Strong Selloff?
The recent surge in Ethereum (ETH) has finally come to a halt, with the price rejecting the crucial resistance level of $4,000. As the digital asset struggles to break above this barrier, concerns are growing that holders may trigger a strong selloff.
Following a period of increased buying pressure, ETH’s volatility has noticeably slowed down over the weekend. The price action is now suggesting that the market has hit a critical juncture. It seems unlikely that buyers will continue to absorb the supply without any fundamental changes in the underlying market dynamics.
The rejection at $4,000 could be an indication of a shift in market sentiment, as many traders and investors who jumped into the Ethereum rally are now looking for opportunities to lock in profits. This could lead to a substantial increase in selling pressure, potentially triggering a strong correction.
Despite some signs of cooling enthusiasm from retail buyers, institutional interest remains steadfastly high. The recent surge in Ethereum spot ETFs has seen over $452 million worth of positive net inflows, indicating that many long-term holders are not willing to give up their gains.
Source: coinpedia.org
