Ethereum Price Recovery Faces Resistance as Long-Term Holders Sell

Ethereum (ETH) has bounced back from recent lows and is now trading near the $4,500 level, signaling a strong recovery despite selling pressure from long-term holders (LTHs). While these influential investors continue to trim their positions, other market participants are stepping in with fresh capital inflows, helping ETH maintain upward momentum.

On-chain data shows Ethereum’s Liveliness metric rising, an indicator that LTHs are actively selling. Historically, when this group reduces exposure, it increases market volatility and often sparks selling cascades. Their cautious stance suggests uncertainty about Ethereum’s ability to sustain short-term gains. Since LTHs control a significant share of supply, their actions are closely watched as a potential drag on ETH’s price.

However, Ethereum’s resilience is being supported by inflows from short- and mid-term investors. The Chaikin Money Flow (CMF) has climbed sharply, reflecting consistent buying activity and growing conviction among these groups. This demand has so far offset the effects of LTH selling, signaling broader confidence in Ethereum’s long-term value.

Currently, ETH is priced around $4,383, with the $4,500 mark acting as key resistance. Multiple attempts to flip this level into support have failed, making it a crucial barrier for determining the next trend. A breakout above $4,500 could open the path toward $4,775 and potentially retest the all-time high near $4,956. Sustained inflows would reinforce bullish momentum and strengthen Ethereum’s price outlook.

On the downside, failure to clear resistance risks a pullback toward $4,222 support, and possibly $4,074, which would weaken the bullish case. For now, Ethereum’s trajectory depends on whether inflows continue to outweigh long-term holder exits, making the coming days critical for ETH’s near-term direction.