Ethereum is one of the most noteworthy cryptocurrency tokens that has seen a decline in the past month. The majority of the crypto market has slumped by double digits in the last 30 days, with the top coins (BTC, ETH, XRP) sliding the most.

Over $1.4 billion in net outflows from spot ETH ETFs since late October added to downside pressure. Additionally, monthly active Ethereum addresses and fees generated by network activity plunged. Long-term holder selling accelerated to its fastest pace since 2021, helping send prices toward their lowest levels of the year. However, analysts fear that things are about to get worse.

Indeed, Ethereum’s RSI has also dropped to around 33, which shows bearish momentum but also brings ETH closer to oversold territory. If the asset fails to hold above $3,000, the next major support sits around the $2,500 zone, a 20% decline, which also aligns with a previous demand area from early Q3.

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Furthermore, long-term holders are also heading towards the exit door. Glassnode’s blockchain data showed that long-term holders spanning 3-10 years accelerated selling to approximately 45,000 ETH (around $140 million at current prices) daily on a 90-day moving average, the highest distribution pace since February 2021.

If buyers want to regain control, they need to reclaim $3,800 with strong volume and flip the 100-day and 200-day moving averages again. Further, the overall crypto market will need to see a rebound, which could come if a US interest rate cut comes this December. However, no light appears in site, meaning the ETH dip could continue to close out the year.