Ethereum Price Consolidation and Buyer-Seller Dynamics Signal Short-Term Caution

I believe that Ethereum is currently in a consolidation phase compounded by heightened selling pressure, as indicated by the sharp decline in the taker buy/sell ratio to 0.87, one of the lowest this year. This shift suggests that sellers are dominating the futures order books, which could signal a risk of further downside if ETH fails to hold on to critical support levels. Despite this short-term bearish sentiment, the broader fundamentals and long-term outlook for Ethereum remain optimistic. The recent correction appears to be a natural part of market cycles following a strong rally, where consolidation phases often precede new upward momentum. Factors like ongoing on-chain accumulation and increasing institutional interest reinforce this outlook, implying that current price declines might set the stage for a healthier future rally. Technically, Ethereum’s price at around $3,654 shows signs of attempted recovery but faces resistance at key levels near $3,860.80 and the 50-period SMA at $3,668.28. Given the proximity of the 200-period SMA at $3,303.42 as support, a deeper correction could still be contained if bullish momentum reemerges and support zones hold. The upcoming days will be essential in confirming whether ETH can stabilize or if it will slide further into correction territory. Overall, while the short-term sentiment appears cautious with increased sell pressure, the long-term prospects supported by strong fundamentals suggest this consolidation might serve as a foundation for future gains once selling intensity subsides.