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Key Takeaways:
- Ethereum saw its second-largest daily sell imbalance with $418.8M in net selling.
- Price must reclaim $3,950 to confirm bullish continuation.
- On-chain growth and LTH conviction offer support despite bearish signals.
Ethereum (ETH) is at a critical juncture, grappling with one of its largest sell-side imbalances in history. Net Taker Volume plunged to -$418.8 million, according to CryptoQuant—marking the second-largest daily net selling ever recorded. This means over 116,000 more ETH were sold than bought in a single day, often a precursor to local tops and price reversals.
$ETH selling pressure has intensified.
— Cas Abbé (@cas_abbe) August 6, 2025
Net Taker daily volume hit -$418.8M, which is the 2nd highest level ever.
In simple terms, sellers offloaded 116K more ETH than buyers were willing to absorb.
In the past, such huge sell-side imbalances have marked the local top.
Should… pic.twitter.com/PTVFuBt43P
Yet, despite this intense pressure, ETH has managed to hover around $3,643, suggesting buyers are absorbing the shock—for now. The question remains: Can Ethereum maintain its footing, or is a deeper correction imminent?
Technical Setup Under Strain Below $3,950 Resistance
Ethereum recently broke out of a bullish “cup and handle” pattern but failed to reclaim the neckline resistance at $3,950. Instead, it now consolidates within a descending channel. The Relative Strength Index (RSI) sits at 57, indicating neutral momentum.
Without a decisive move above $3,950, the bullish setup risks invalidation. A failure to reclaim this key level could lead to a broader retracement, putting immediate support zones at risk.
On-Chain Metrics Show Resilience Amid Volatility
While price action weakens, Ethereum’s on-chain data paints a more optimistic picture. New Addresses have surged nearly 30%, and Active Addresses are also on the rise, according to IntoTheBlock. Historically, such upticks in network activity serve as bullish undercurrents and may provide a stabilizing effect amid volatile market moves.
This divergence between growing user activity and declining price suggests Ethereum still has fundamental strength that could cushion the downside.
Long-Term Holders Show Strong Conviction
Valuation indicators reflect a complex but promising outlook. Although Ethereum’s NVT Ratio indicates potential short-term overvaluation, the MVRV Long/Short Difference remains over 12.36%, signaling strong unrealized gains among long-term holders.
Also Read: SEC Just Cleared Liquid Staking—Here’s Why It’s Huge for Ethereum and DeFi
This suggests that despite short-term selling, seasoned investors maintain faith in Ethereum’s valuation—a factor that could prevent a deeper breakdown.
Ethereum’s immediate future hinges on its ability to reclaim the $3,950 resistance level. While historic sell pressure threatens to derail bullish momentum, rising on-chain activity and long-term holder support offer hope. For now, ETH remains locked in a battle between weakening technicals and strengthening fundamentals.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
