#CryptoObservers  Will Ethereum Be a Long-Term Investment Profit?

On June 20, a key on-chain metric that tracks the behavior of long-term holders of ETH (LTHs) closed at an all-time high, indicating increasing selling pressure from the group.

This comes at a time when the overall market momentum has cooled significantly. The bearish sentiment is increasing as demand for ETH weakens and investors largely sit on the sidelines due to a persistent market slowdown.

Ethereum Liveliness at a Record High

ETH’s Liveliness rose to an all-time high of 0.69 during Friday’s trading session. This metric tracks the movement of long-held/stable tokens. It does this by measuring the ratio of an asset’s days of coins destroyed to its total days of coins accumulated.

When this metric drops, an asset’s LTHs are withdrawing their holdings from cryptocurrency exchanges. This is seen as a signal of accumulation. On the other hand, when it rises, as is the case with ETH, LTHs are moving their coins to exchanges to sell.

The rise in ETH’s Liveliness to 0.69 shows that LTHs are increasingly liquidating their positions as uncertainty increases. This reflects a lack of confidence in the coin’s near-term price recovery.

Additional confirmation of this bearish trend can be found on ETH’s daily chart, where the coin’s Chaikin Money Flow (CMF) is showing a negative and downward trend. ETH’s CMF is at -0.08, indicating a decrease in capital inflows.

The CMF indicator measures the flow of money into and out of an asset. When negative, it indicates low buying interest and confirms a shift toward distribution rather than accumulation.

ETH Eyes May Drops

Continuous selling by long-term ETH holders and falling demand for the coin in the market as a whole could lead to a deeper correction in the near term.

The leading altcoin is trading at $2,280. If the sell-off continues among experienced ETH holders, the coin could fall to $2,185. If this price floor cannot hold, the coin could fall to the $2,027 level it reached in May.

Otherwise, a new demand for the altcoin could invalidate this bearish view. In this scenario, the price could reverse the downtrend and rise towards $2,745.