Ethereum Struggles to Hit New High Amid Selling Pressure

Ethereum (ETH) has climbed back above a key price level, sparking speculation about whether it can achieve a new all-time high before the year ends. Despite this upward move, some market signals suggest that further growth may face challenges unless buying pressure strengthens.

One key indicator impacting ETH’s price movement is Open Interest (OI), which measures the total value of active contracts in the derivatives market. A rise in OI typically signals growing interest and liquidity in a cryptocurrency, which can drive prices higher. Recently, however, Ethereum’s OI has dropped slightly, indicating that traders are closing positions and reducing market exposure. This shift suggests that selling pressure may be building, which could limit ETH's short-term gains.

Another sign of this trend is the increased flow of Ethereum to exchanges. When investors transfer more tokens to exchanges, it often signals an intention to sell, adding downward pressure on prices. Recent data shows that Ethereum exchange inflows have risen, supporting the idea that sellers are gaining control. If this trend continues, it could hold ETH back from reaching higher levels in the near future.

From a technical perspective, the Parabolic SAR indicator, which helps identify support and resistance, also points to challenges ahead. The indicator currently signals resistance, suggesting that Ethereum’s price may face difficulty breaking higher. As long as ETH trades below this resistance level, there is a risk of a pullback.

However, a reversal remains possible. If Ethereum’s OI rebounds, signaling renewed buying interest, and exchange inflows drop, the selling pressure would ease. This could allow ETH to regain its upward momentum, potentially pushing its price higher and bringing new milestones into view.

Ethereum has seen strong gains this year, driven by increased investor interest and broader optimism in the crypto market. Even so, short-term factors like reduced liquidity and rising sell-offs could slow its momentum. For ETH to challenge its previous highs, it will need renewed confidence from traders, increased demand, and lower selling pressure.

While the current outlook shows mixed signals, Ethereum’s long-term potential remains tied to its fundamentals. A shift in market conditions, such as reduced selling activity or stronger inflows into derivatives contracts, could spark the momentum needed for another rally. Until then, ETH’s upward climb may depend on whether these indicators improve.

In summary, Ethereum’s Open Interest decline, rising exchange inflows, and technical resistance suggest the market is cautious. While a pullback is possible, renewed buying interest could still change the narrative, leaving open the chance for Ethereum to reclaim higher levels before the year ends.