Ethereum Price Faces a Drop to $4,000 Owing to $2 Billion ETH Selling
Ethereum faces mounting pressure as $2.3 billion worth of ETH flows to exchanges, with risks of a drop to $4,000 if support fails.
Ethereum failed to reach the $5,000 mark earlier this month and is now struggling to remain above $4,500.
The altcoin king faces increasing pressure as recent market conditions weaken support levels. With selling activity rising, Ethereum could be vulnerable to further declines in the near term.
Ethereum Holders Are Selling
The MVRV Ratio for Ethereum has climbed to 2.15, showing that on average, investors currently hold 2.15 times their initial capital as unrealized gains. This level has historically coincided with periods of increased profit-taking. Similar patterns were observed in March 2024 and December 2020, both followed by heightened volatility.
On-chain data confirms profit-taking is already elevated. Investors are using these levels to lock in gains, leading to increased selling pressure. The correlation between the current MVRV ratio and past cycles highlights the likelihood of short-term corrections.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter

The exchange net position change further highlights selling activity. Investors have shifted from accumulation to distribution, with 521,000 ETH worth over $2.3 billion sent to exchanges in the past week. This scale of inflow indicates widespread profit-taking across the market. Such actions typically increase the chance of extended corrections.
The timing aligns with the MVRV signal, reinforcing the historical pattern of sharp declines following high unrealized gains. Fear of saturation in bullish momentum appears to be driving capital rotation. The combination of heavy inflows and elevated profit-taking weakens.

ETH Price Remains Vulnerable
Ethereum trades at $4,433 at the time of writing, sitting below the $4,500 resistance. The asset failed to reclaim this level as support, signaling weakness in sustaining higher ground. Without renewed buying, Ethereum risks sliding further into lower ranges.
The prevailing conditions suggest Ethereum could break the $4,222 support. A decline below this level may push the altcoin king down to $4,007 or lower. Such movement would confirm broader selling trends and align with on-chain indicators signaling profit-taking.

If selling pressure halts, Ethereum may bounce from $4,222 and attempt to reclaim $4,500. A successful recovery could extend to $4,749, re-establishing short-term strength. This move would invalidate bearish signals.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum's Technical Resilience: On-Chain Data and Sentiment Converge as Altcoin Season Gains Momentum
- Ethereum's Q3 2025 on-chain growth (1.74M daily txns, 680K active addresses) and 29.6% staking rate highlight institutional adoption and Layer 2 scalability. - Regulatory clarity (CLARITY Act) and SEC-approved ETFs drove $27.6B inflows, with ETHA capturing $640M in one day as staking yields (3-5%) outperform traditional assets. - Ethereum's ETH/BTC ratio rose to 0.71, signaling capital reallocation to altcoins, with 55.5% market share and 65% of DeFi TVL ($45B) reinforcing its altcoin season dominance. -

LINK -27.64% on Short-Term Volatility and Chainlink Network Developments
- Chainlink (LINK) dropped 27.64% in 24 hours to $24.32 due to reduced network activity and market sentiment shifts. - The decline followed a 55.6% seven-day drop, despite 3741.13% monthly and 1619.19% annual gains. - Technical indicators showed bearish divergence, with EMA crossovers and RSI below 40 confirming the sell-off. - Chainlink emphasized network upgrades, but investors remain cautious about short-term liquidity and long-term roadmap impacts. - A backtested strategy using EMA and RSI confirmed th

Solana News Today: BlockDAG’s Hybrid Model Rivals Solana’s Scalability Push
- BlockDAG's $386M presale sold 25.5B tokens, engaging 200K+ participants through mobile mining and gamified features before mainnet launch. - The platform's interactive tools, including X1 mobile mining and "Buyer Battles," differentiate it from traditional speculative presales by fostering active user ecosystems. - Analysts project $1-$10 price potential based on 2.5M app downloads, 4,500+ developers, and partnerships with Inter Milan and Seattle sports teams. - Early investors gained 2900% as token pric

Ethereum News Today: Tether U-Turn: Prioritizing Growth Over Legacy Chains
- Tether reversed its plan to freeze USDT on five blockchains, opting to discontinue direct issuance while keeping existing tokens transferable. - The decision followed community feedback and prioritizes supporting chains with active ecosystems like Tron and Ethereum, which hold $80.9B and $72.4B in USDT. - Affected networks like Omni (holding $82.9M) will lose official support, reflecting Tether's gradual shift toward scalable networks and compliance with global regulations. - The stablecoin market remain

Trending news
MoreCrypto prices
More








