Ethereum Price Faces a Drop to $3,000 Due to This Technical Indicator

The price of the top altcoin, Ethereum, continues to drift away from the $4,000 mark. Recent profit-taking and cautious sentiment are weighing on market momentum, causing ETH's price to drop significantly from the July peak of $3,941.

Technical indicators and on-chain data currently suggest a high likelihood of the price falling below $3,000 in the coming weeks.

ETH Faces Challenges as Accumulation Declines and Bearish Signals Increase

Data from Glassnode shows that the Ethereum Holder Accumulation Ratio closed at a two-month low of 27.57% on Saturday, indicating that investors are no longer actively adding to their ETH holdings.

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According to the on-chain data provider, this indicator measures the percentage of addresses currently increasing their ETH balance compared to those decreasing or maintaining their balance.

When this index rises, it indicates accumulation behavior — typically seen in price increase periods when confidence in future price growth is high.

Conversely, a declining ratio, as currently observed, signals weakening confidence and hesitation in buying during price drops. With fewer holders accumulating, ETH lacks the necessary buying pressure to maintain recovery.

Moreover, ETH's Elder-Ray Index has displayed red chart bars in the last three trading sessions, confirming that Bears have pushed back Bulls. At the time of writing, this index stands at -342.73.

This index measures the strength of Bulls and Bears in the market. When it shows green chart bars, it indicates strong buyer dominance and increasing price momentum.

Conversely, for ETH, bearish momentum increases when it displays red bars of growing size. These red bars show that selling pressure is not only present but also increasing over time.

ETH Targets $2,745 as Buyers Retreat

ETH is currently trading at $3,457, just below the important resistance level formed at $3,524. If accumulation weakens, bearish momentum could pull the price down to the next key support level at $3,067.

If this support is broken, ETH could slide further to test the $2,745 zone.

Conversely, a new wave of demand could change sentiment and drive recovery. In that case, ETH might attempt to break through the $3,524 resistance. A successful breakout could pave the way for an extended price increase towards $3,859.