Ethereum Struggles to Recover as Investors Pause Selling but Momentum Remains Weak

Ethereum (ETH) continues to face challenges in regaining upward momentum after its 15.8% decline earlier this month. Despite easing selling pressure, the world’s second-largest cryptocurrency remains trapped in a sideways trend as investors remain cautious amid broader market uncertainty.

Recent on-chain data reveals that Ethereum’s exchange net position change has shown a noticeable decline in outflows, signaling that investors are slowing their selling activity. This development suggests that bearish sentiment is cooling, potentially paving the way for price stabilization. However, this trend reflects a pause rather than a reversal, as reduced outflows have not yet led to strong accumulation — a critical factor for a sustainable recovery.

Ethereum’s Relative Strength Index (RSI) continues to signal weakness, holding below the neutral 50 level. While it has rebounded slightly from oversold conditions, the indicator still points to dominant selling pressure. For ETH to regain bullish momentum, the RSI must rise above 50 and maintain that position, confirming stronger buying confidence among traders.

At the time of writing, Ethereum trades at $3,512, hovering just above the $3,489 support zone following recent volatility. The altcoin remains below key resistance levels, particularly at $3,607, which must be breached to signal a potential trend reversal. Until then, Ethereum is likely to continue consolidating between $3,489 and $3,287, reflecting neutral market sentiment.

If broader crypto market conditions improve, Ethereum could attempt another test of the $3,607 resistance. A successful breakout above this level may open the door for a move toward $3,802, signaling renewed bullish strength and potentially ending the current consolidation phase.