Ethereum's native token, Ether (ETH), is facing significant selling pressure as it retests a crucial resistance zone near $4,000, reminiscent of a prior peak in December 2024 which led to a drastic 66% price drop. Currently, ETH's Net Taker Volume has plunged to -$418.8 million, marking the second-largest sell imbalance ever recorded. This indicates that traders sold 115,400 more ETH than they purchased in recent days, pointing to possible capitulation or profit-taking by investors. Analysts have noted that such heavy sell-side pressures have historically signaled local tops for Ethereum. If the current trend continues, ETH could decline 25% to 35%, potentially retracing towards its 50-week and 200-week exponential moving averages, estimated at $2,736 and $2,333 respectively. The notable surge in sell pressure and the testing of historical resistance levels raise concerns about the sustainability of Ethereum's ongoing rally, mimicking patterns observed from late 2024.

Source šŸ”—