On June 20, a critical on-chain metric that monitors the activity of Ethereum's long-term holders (LTHs) concluded at an all-time high, which indicates a rising selling pressure from this group. This development occurs while the overall market momentum has weakened substantially. As demand for Ethereum diminishes and investors remain largely inactive due to ongoing market stagnation, pessimistic sentiment is intensifying.

Glassnode data reveals that Ethereum's Liveliness surged to a record high of 0.69 during Friday's trading session. This metric assesses the movement of long-stored or dormant tokens by calculating the ratio of an asset's coin days destroyed to the total coin days accumulated.

A decline in this metric implies that the long-term holders of an asset are withdrawing their holdings from exchanges, a move interpreted as an indication of accumulation. Conversely, when the metric rises, as observed with Ethereum, it shows that these holders are transferring their coins to exchanges for selling purposes.

The spike in Ethereum's Liveliness to 0.69 suggests that its long-term holders are progressively liquidating their positions amid increasing uncertainty. This reflects a growing lack of faith in the short-term price recovery of the coin.

Further validation of this bearish trend can be seen on Ethereum's daily chart, where the coin's Chaikin Money Flow (CMF) is negative and trending downwards. At present, Ethereum's CMF stands at -0.08, showing a decrease in capital inflow.

The CMF indicator evaluates the flow of funds into and out of an asset. A negative value signals low buying interest and supports the transition towards distribution rather than accumulation.

The continuous selling by Ethereum's long-term holders, coupled with declining market-wide demand for the token, might result in a more significant correction in the short term.

At the time of publication, the leading altcoin is trading at $2,429. Should seasoned holders continue to sell, the coin may fall to $2,185. If this support level breaks down, the coin could plunge further to $2,027, a level it last touched in May.

On the other hand, a revival in new demand for the altcoin would nullify this bearish prediction. In such a case, its price could reverse its downward trajectory and rise to $2,745.

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