Ethereum Price at Risk: Selling Pressure Signals Possible Drop Below $3,000

Core Viewpoint - Ethereum is experiencing bearish pressure after failing to maintain above key resistance levels, with growing sell-side pressure and weak market conditions testing support from long-term holders [1][2][3] Group 1: Market Dynamics - Long-term Ethereum holders (LTHs) are in accumulation mode, as indicated by the HODLer Net Position Change showing steady accumulation since late December, which has helped cushion recent pullbacks [2] - The ETH derivatives market shows a significant short positioning, with over 83% of open exposure leaning bearish, which could amplify volatility as prices move [4] - Liquidation data indicates a danger zone around $3,000, where a push into this area could trigger approximately $368 million in long liquidations, potentially accelerating downside momentum [5] Group 2: Technical Indicators - Momentum indicators, such as the Money Flow Index (MFI), have slipped below the 50 midline, indicating that capital is rotating out and sellers are in control until proven otherwise [6] - Ethereum's price is currently near $3,109, with a developing double top pattern suggesting a potential 7.5% decline towards the $2,900 level if confirmed [7] - Losing the $3,085 support level would confirm a breakdown, with intensified selling pressure expected if ETH slips below the $3,000 psychological level, increasing liquidation risk [8]