Long term ETH holders are starting to sell: Is the selling pressure increasing?

On June 20th, an important on-chain indicator tracking the activities of long term ETH holders (LTH) recorded a record high, indicating that selling pressure from this group is significantly increasing.

This increase in selling occurs against the backdrop of a market that is gradually losing momentum. As demand for ETH weakens significantly and most investors remain on the sidelines due to prolonged stagnation, a pessimistic sentiment is enveloping the market.

Liveliness of Ethereum reaches a record high

According to data from Glassnode, the Liveliness index of Ethereum surged to a record high of 0.69 during the trading session on June 20 — a clear sign that long term holders (LTH) are increasingly selling.

Liveliness is an index that measures the activity of coins that are "hibernating" by comparing the number of days a coin has been destroyed to the total number of days the coin has been accumulated. When this index decreases, it indicates that holders are accumulating – often by moving coins off exchanges and into long term storage wallets. Conversely, when Liveliness increases, as it currently is with ETH, it reflects distribution activity – meaning holders are moving their assets to exchanges, possibly to sell.

Liveliness ETH | Source: GlassnodeThe spike in Liveliness to 0.69 indicates a growing lack of confidence among long term holders regarding the short term recovery prospects of ETH, amid a highly unstable market.

This selling pressure is also reinforced by other technical signals. On the daily chart, the Chaikin Money Flow indicator for ETH is at -0.08 and trending downwards, indicating that capital is flowing out of the market – a negative signal regarding liquidity and buying momentum.

! Ethereum CMF ETH | Source: TradingViewThe Chaikin Money Flow indicator (CMF) measure buying and selling pressure by tracking the flow of money in and out of an asset. When the CMF is negative, it reflects the outflow of capital being drawn, indicating weak buying demand and reinforcing the trend of distribution rather than accumulation.

ETH drops to a low for May

Continuous selling pressure from long term ETH holders, combined with a noticeable weakening in market demand, could push Ethereum into a deeper correction in the near future.

As of the time of writing, ETH is trading around $2,440. If the sell-off from long-term holders continues, the price could retreat to the support level of $2,185. In a worse-case scenario, if this level does not hold, ETH is at risk of continuing to fall to $2,027 – the lowest price recorded in May.

ETH Price Analysis | Source: TradingViewConversely, if the demand for this altcoin recovers, the current bearish scenario could be invalidated. In the event that buying pressure returns strong enough, ETH has the potential to reverse the trend and aim for the next resistance area around the $2,745 mark.

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