Ethereum has seen a significant 15% decline in the past week, leading to losses for investors. This drop has increased selling pressure as holders are more inclined to secure profits rather than endure volatility, potentially worsening Ethereum's downward trajectory. The recent price drop has caused a surge in ETH supply loss, with 7 million ETH lost in just a week, totaling over $23 billion in losses. This rise in losses has raised concerns about heightened selling activity. Investor behavior indicates a shift towards liquidating holdings rather than waiting for a rebound, which could push prices lower and put Ethereum at risk of a prolonged bearish phase. Ethereum's macro momentum shows potential weakness, with profitability addresses comprising over 28% of participants on the network. Historically, when profitability exceeds 25%, further price declines often occur. The inability to establish $4,000 as a support level leaves Ethereum vulnerable to further corrections. If the downtrend and selling pressure continue, Ethereum could lose the $3,327 support level, potentially driving the price below $3,000. On the upside, Ethereum faces resistance at $3,524, but if this level is surpassed, it could trigger a rebound towards $3,721, boosting investor confidence and market sentiment.



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