TLDR
Ethereum experienced extreme selling pressure with Net Taker Volume plunging to -$418.8 million
ETH continues hovering around $3,643 despite the selling pressure
Network activity is rising with New Addresses up 29.94% and Active Addresses up 3.17%
Long-term holders remain in profit, showing strong conviction despite market weakness
ETH must reclaim the $3,950 resistance level to confirm a bullish breakout
Ethereum, the world’s second-largest cryptocurrency, finds itself at a pivotal moment. The digital asset faces record-level selling pressure while simultaneously showing strong on-chain metrics. This contradiction has left traders and investors watching closely to see which force will ultimately prevail.
Recent data from CryptoQuant revealed Ethereum’s Net Taker Volume plunged to -$418.8 million, marking the second-largest daily sell-side imbalance ever recorded. This means 116,000 more ETH were sold than bought in a single day. Such heavy selling typically precedes local tops and often acts as a reversal signal.
$ETH selling pressure has intensified.
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
— Cas Abbé (@cas_abbe) August 6, 2025
Despite this intense selling pressure, ETH has managed to hold its ground. The price continues hovering near $3,643, suggesting buyers are still actively absorbing the pressure. This resilience indicates potential stability before Ethereum makes its next significant move.
The cryptocurrency recently completed a textbook cup and handle formation, which normally signals bullish continuation. However, the price failed to reclaim the critical neckline resistance at $3,950 and now consolidates within a descending channel. The Relative Strength Index (RSI) stood at 57, hinting at neutral momentum with no clear breakout pressure yet visible.
For the bullish structure to remain valid, ETH must reclaim $3,950 quickly. A rejection at this level could open the door to further retracement toward support levels.
On-Chain Growth Remains Strong
Contrary to the bearish market signals, Ethereum’s network activity shows impressive growth. According to IntoTheBlock, New Addresses surged by 29.94% while Active Addresses increased by 3.17%.
This growth in user activity provides a strong foundation for price stability and potential recovery. Historically, increased address growth correlates with positive price action in the medium term.
The divergence between current price action and on-chain trends may signal underlying strength in the Ethereum ecosystem. If user activity remains elevated, Ethereum could maintain its support levels and eventually rebound, even as sell pressure continues to challenge bullish expectations.
Long-Term Holder Conviction
On-chain valuation metrics present a nuanced picture of Ethereum’s current state. The Network Value to Transactions (NVT) Ratio has spiked, showing that Ethereum’s market cap is outpacing transaction activity. This typically suggests short-term overvaluation.
However, the Market Value to Realized Value (MVRV) Long/Short Difference remains above 12.36%. This metric reveals that long-term holders are still sitting on sizable unrealized gains, reflecting strong conviction from seasoned investors despite recent market weakness.
While there’s always a risk of profit-taking, the ongoing commitment from these long-term holders provides a cushion against further drops. If these participants continue holding firm, Ethereum could remain resilient and eventually retest the $3,950 resistance with renewed momentum.
In the short term, ETH’s trading volume has dropped by 11.95% to $90.41 billion, and open interest fell by 4.28% to $46.76 billion. This indicates a slowdown in market activity.
Yet the funding rate remains slightly positive at 0.0085%, suggesting cautious optimism among traders. While overall momentum has cooled compared to earlier surges, the market still has potential for a bullish comeback.
Price Levels to Watch
The next important barrier for Ethereum is at $3,817. If ETH rises above that level with strong buying support, it could open the door for a move toward the psychologically important $4,000 level.
On the downside, if ETH drops below its current support zone around $3,396, the next likely stop could be near $3,144, an area where buyers previously stepped in.
At the time of writing, ETH is trading at $3,621.30, down 1.33% in the past 24 hours and 3.63% over the last week. Its daily trading volume stands at $30.37 billion.
Ethereum remains at a critical juncture as record-level sell pressure clashes with improving on-chain trends and strong holder conviction. The coming days will reveal whether buyers can push Ethereum higher or whether recent sell-offs will trigger a deeper retracement.
