Ethereum faces mixed signals at this key price level

The price of Ethereum (ETH) continues its efforts to break through the long-standing $3,000 resistance, but this move has yet to achieve the expected results. After a slight increase, ETH quickly returned to this support zone, reflecting a clear division in market sentiment.

Although bullish momentum is gradually returning, investors’ impatience could put pressure on the recovery process if the market fails to establish a clear trend in the near future.

Investors may sell their ETH

The MVRV Long/Short Diff indicator is currently approaching the neutral line, indicating a potential shift in profit positions between long-term and short-term investors. This indicator reflects whether long-term investors (LTH) or short-term investors (STH) are realizing more profits. For Ethereum, if this indicator drops below neutral, it means the STH group is holding the majority of unrealized profits.

This shift is particularly important because short-term investors often tend to sell once there are signs of market weakness. If they start taking profits around the $3,000 mark, ETH could face stronger selling pressure. This behavior has repeatedly disrupted previous recovery efforts, making market sentiment fragile despite broad positive signals.

Ethereum MVRV Long/Short Diff | Source: Santiment

Additionally, the squeeze momentum indicator is adding complexity to price action. ETH is currently in a squeeze accumulation phase, where market volatility is narrowing and momentum is being compressed.

Typically, this phase paves the way for a strong price move in a specific direction. The current bar chart shows increasing bullish momentum, implying that once the squeeze is released, price could accelerate sharply.

If bullish momentum continues to build in the near future, ETH may benefit from an expansion in volatility in a positive direction. This setup has previously laid the foundation for strong rallies in past cycles, but confirmation still depends on the level of market participation and whether buyers are willing to step in at the $3,000 range.

ETH squeeze momentum indicator | Source: TradingView

ETH price may continue to decline

Currently, Ethereum is trading around $3,045, holding above the key $3,000 support level. In recent days, ETH has continuously hovered near this price zone, reflecting traders’ hesitation as market signals keep changing.

These conflicting signals suggest ETH could continue to move sideways around the $3,000 level in the short term. If a correction occurs due to short-term investors taking profits or widespread market skepticism, Ethereum could be pushed down to the $2,762 zone before finding stability again.

ETH price analysis | Source: TradingView

On the other hand, if bullish momentum continues to build along with favorable macro factors, ETH could easily break above $3,131 and target $3,287. A clear breakout above these levels would erase the negative outlook and open the door to a stronger recovery phase for Ethereum.

Mr. Giao