Ethereum Faces Continued Bearish Pressure as Taker Buy/Sell Ratio Declines
In early August, Ethereum (ETH) experienced a significant drop in value, losing approximately 30% and plummeting to $2,226 per unit. Despite this decline, the altcoin has displayed resilience in recent weeks, bouncing back to the $2,600 price range. However, there is uncertainty surrounding how long Ethereum can maintain this upward trend. CryptoQuant analyst ShayanBTC has suggested that Ethereum may soon revert to a bearish trajectory.
A recent analysis by ShayanBTC indicated that Ethereum’s Taker Buy/Sell Ratio signals a potential further price decrease in the near future. The Taker Buy/Sell Ratio serves as a tool to assess the balance between aggressive buying and selling activities by evaluating the volume of taker buy and sell orders. A ratio above one typically indicates a bullish market sentiment with more aggressive buyers, while a ratio below one suggests bearish pressure with more sellers.
Following Ethereum’s failure to surpass the $3,000 price resistance, the Taker Buy/Sell Ratio witnessed a sharp decline, aligning with the asset’s price movement. Despite a subsequent recovery in the metric due to Ethereum’s price gains, the ratio remained below 1, indicating a lack of substantial buying pressure and allowing sellers to maintain control of the market.
Recent data from CoinMarketCap shows that Ethereum is currently trading at $2,610, reflecting a modest 0.61% increase in the last 24 hours. However, over a longer timeframe, the asset has experienced a 23.93% decline in the past month. Ethereum is anticipated to face initial resistance at the $2,700 price level, with the potential to surpass this barrier and reach $3,000 if buying pressure persists. Conversely, heightened selling pressure, as indicated by the Taker Buy/Sell ratio, could drive the price down to $2,300.
In conclusion, the future trajectory of Ethereum’s price remains uncertain, with conflicting signals from market indicators. Traders and investors are advised to exercise caution and closely monitor market developments to navigate potential price fluctuations effectively.
