Ethereum (ETH) is facing intense selling pressure as it retraces to a critical monthly demand level, raising questions about whether the second-largest cryptocurrency can hold its ground or fall further. The recent price dip comes amid broader market volatility and profit-taking from traders after ETH’s strong rally in recent weeks.
With ETH trading around the $2,900-$3,000 zone, analysts are closely watching this key support level — a make-or-break moment for Ethereum’s price trajectory.
What Is the Monthly Demand Level for ETH?
A demand level represents a price range where buyers historically step in to accumulate assets, creating strong support zones. Ethereum’s current demand zone sits between $2,850 and $3,000, where the market has previously seen increased buying activity.
This zone has been a key support area since early 2024 and could act as a launchpad for ETH’s next leg higher — if buyers defend the level.
Why Is Ethereum Facing Selling Pressure?
Several factors are contributing to Ethereum’s current price retracement:
1. Profit Taking
Ethereum recently rallied above $3,200 — its highest price in almost two years — prompting many short-term traders to lock in profits.
2. Bitcoin Correlation
Ethereum’s price often follows Bitcoin’s movements, and BTC’s recent retracement toward $50,000-$51,000 has added pressure on ETH.
3. Regulatory Uncertainty
Ongoing regulatory discussions around Ethereum staking and crypto ETFs in the U.S. have added uncertainty to ETH’s outlook.
4. Network Upgrades
Investors are eagerly awaiting the Ethereum Pectra upgrade, which could enhance the network’s scalability — but delays or lack of clarity on the upgrade’s timeline could be weighing on sentiment.
Will ETH Hold or Break Down?
According to on-chain data from Glassnode, the current demand zone is seeing increased buying activity from whale addresses — a sign that large investors are accumulating ETH at this level.
Popular analyst Michael Van de Poppe believes Ethereum could hold above $2,900 if Bitcoin stabilizes, stating:
“Ethereum’s demand zone remains intact. If BTC consolidates, expect ETH to rebound toward $3,200 and $3,500 in the coming weeks.”
However, if ETH breaks below the $2,850 support, the next key downside target could be around $2,600-$2,700, potentially wiping out recent gains.
Key Levels to Watch
Final Thoughts
Ethereum is at a critical crossroads, with its price balancing on a key support zone that could dictate its short-term trend. If ETH holds above $2,900, the bullish momentum could resume, especially with the Pectra upgrade on the horizon.
However, a breakdown below this level could trigger further losses, testing lower support zones before any bullish continuation.
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