Finally, New Yorkers distributed and flushed out excess longs rapidly with a 5-hour selling spree that has already pushed ETH down from $3,200 to $2,950 at the time of writing.

Is this sell-off setting the stage for the rest of the week, or is ETH preparing to grab additional sell-side liquidity before its next leg up?

The $3,000 psychological threshold has not been able to backstop the decline thus far, as selling pressure seems to be quite strong.

Trading volumes in the past 24 hours have jumped by 119% to $26.5 billion, currently accounting for over 7% of the asset’s circulating market cap. This confirms that bears are currently in control of the price action.

Hence, unless we get a confirmed bounce that paves the way for a bear trap under $3K, the baseline short-term outlook for ETH for the week remains bearish.

The daily chart shows that ETH has dropped in 4 out of the past 6 sessions after hitting the $3,300 area. This price zone was highly relevant from a technical standpoint, as a move above it would have invalidated the token’s downtrend.