- The Ethereum OBV falls below long-term support, indicating a downward movement, and agrees with the technical analysis that illuminates the weak prices in the short term.
- Ether has dropped to below the 3,800 support level, and the next point of concern is 3,600, which has affected the strategies and volume flows of traders
- Bitmine and other institutional players hold $8 billion of Ethereum and are patient waiters who are confident in the market despite the short-term decrease in price momentum
Ethereum’s recent price behavior reflects renewed selling pressure as technical indicators shift. The On-Balance Volume (OBV) trend now points to weakening momentum, while analysts warn of potential retests of lower support zones near $3,600.
OBV Indicates Renewed Selling Momentum
According to market analyst IncomeSharks Ethereum’s OBV chart has again slipped beneath its long-term support line, suggesting fading bullish momentum. Earlier this year, the OBV had diverged positively when price action was still subdued, signaling accumulation and offering an early Buy opportunity that preceded a strong rally.
After the indicator subsequently broke its upward trend structure, it gave traders the opportunity to exit trades prior to the broader retracement. OBV was also a great recent tool for extending profit motion and avoiding downside exposure. Now OBV is showing potential continuation of the downtrend.
IncomeSharks added that trusting OBV on the way up and down is still a consistent and disciplined process. When momentum shifts upwards again, and it eventually will, traders can enter back knowing volume was the reason for the move.
Ethereum Price Loses $3,800 Support
Market analyst Ted observed that Ethereum lost the $3,800 support level, opening the next critical level at $3,600. The coin’s next step is to get back to the $4,000 level soon or risk losing further strength and the bullish structure.
This technical setup indicates a market currently leaning toward caution. Price behavior near $3,600 will likely determine whether short-term selling continues or buyers attempt to defend this zone. Traders are now observing how price and OBV align as Ethereum searches for stability.
Short-term sentiment remains subdued as Ethereum trades below resistance thresholds. Any sustained recovery above $4,000 could mark the beginning of a fresh uptrend supported by renewed volume flow.
Institutional Holdings and Market Confidence
At the same time, CryptoGoos wrote that Bitmine controls more than $8 billion in Ethereum. Such extensive holding indicates faith in the asset’s long-term prospects amid short-term volatility.
Institutional investors generally have longer horizons for their investments, weathering volatility in the hope of eventual gains. Their ongoing presence lends underlying solidity to Ethereum’s general outlook for the market.
But short-term direction remains technically controlled by OBV and support levels. Traders continue to seek confirmation of fresh buying volume, which would signal a return to accumulation from defense.
