Ethereum Sell Signal vs $2.8B Demand Zone: What’s Next?

Ethereum is flashing a sell signal as its Price DAA Divergence shows daily active addresses falling alongside price, producing a red bar that signals mounting selling pressure and stalled bullish momentum. MVRV below 0.8 has historically indicated undervaluation, and with ETH trading below the Extreme Lows for roughly 5% of trading days, the MVRV setup could precede a rebound if investor confidence holds.

The most significant support sits at the $1,880 demand zone, where holders have accumulated 1.406 million ETH worth over $2.81 billion. Dips into this area have typically been met with strong buying, suggesting investors are reluctant to sell below that level. A renewed drop to $1,880 would likely attract bids, but a break below it would trigger a sharper decline and leave ETH vulnerable to lower prices.

On the upside, ETH is trading at $1,998 and faces resistance along a downtrend line that may keep prices subdued in the short term.

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