Ethereum could face a sell-off if it hits THIS price range

• 1.38 million addresses bought 1.33 million ETH at an average price of $2,984.
• ETH remains in the $2,900 range despite its decline.

Following Ethereum’s [ETH] recent climb into the $3,000 price range, the number of profitable traders increased and then declined. Now that the price has dropped below that range, is there a possibility of witnessing selling pressure from some of the holders?

Ethereum faces selling pressure

Recent data showcasing the addresses that acquired Ethereum within the $2,500 to $3,000 price range indicates a nearly equal distribution between addresses in profit and those out of profit. “In the money” refers to addresses in profit, while “out of the money” describes those not in profit.

The data showed that 7.36 million addresses, accounting for 52.19% in this category, are currently in profit. Conversely, 6.47 million addresses, representing 45.88%, are currently out of profit. Breakeven addresses, totaling over 272,000, make up 1.9% of this group.

Delving further into addresses in a loss, 1.38 million bought 1.33 million ETH at an average price of $2,984, amounting to around $3.9 billion.

The implication is that we might see an increase in selling pressure if these addresses move into the breakeven region. This possibility gains strength, particularly considering that four whales sold 34,134 ETH near the $3,000 price, totaling around $100.8 million.

Ethereum remains in strong bull trend

An assessment of the Ethereum price trend on its daily timeframe showed that its stint in the $3,000 price range was short-lived.

Subsequently, it declined below this threshold, but not by a significant margin. At the time of this writing, it was trading at around $2,920, reflecting a decrease of about 1.4%. Since descending from the $3,000 price range, it has maintained the $2,900 range.

Source: Trading View

Despite the price drop, the trend remains strong, as indicated by the Relative Strength Index (RSI), which was above 70 at the time of this writing.

However, if the price continues to fall, the RSI position might change. Although Ethereum would still be in a bull trend, it would exit the overbought zone.

 How much are 1,10,100 ETHs worth today

MVRV shows declining profitability

The seven-day Market Value to Realized Ratio (MVRV) analysis showed a gradual decline in Ethereum’s profitability.

According to Santiment data, there has been a sharp drop in the last 48 hours, with the MVRV decreasing from over 6% to 1.15% at the time of this writing. This suggests that ETH holders currently hold around 1% profit in this timeframe.

Source: Santiment