Understanding the Impact of Ethereum’s 70% Orderbook Imbalance on Traders
Ethereum traders are closely monitoring the current order book imbalance of 70%, indicating a potentially bullish trend for the cryptocurrency. Despite concerns surrounding Ethereum’s failure to reach a new all-time high in 2024, there is optimism among enthusiasts due to recent developments in the ETH/USDT pair.
Data from Hyblock Capital has highlighted a significant bid imbalance of 70% for Ethereum at a 1-2% depth. Historically, when Ethereum has experienced a similar bid imbalance, it has marked a price bottom and initiated an upward trajectory.
The current bid imbalance suggests the possibility of a price surge for Ethereum, with the cryptocurrency forming an ascending triangle on the weekly timeframe. This pattern, coupled with the 70% bid imbalance, reinforces the potential for a bullish breakout.
As the Relative Strength Index (RSI) heatmap indicates, many cryptocurrencies are currently in a weak or neutral zone, with an average RSI of 40.22%. This transition from oversold conditions could signal an impending upward movement for Ethereum, aligning with expectations of a price surge.
Ethereum’s co-founder, Vitalik Buterin, recently announced plans to donate his Layer 2 (L2) and project tokens to support public goods within the ETH ecosystem and charitable causes, further strengthening Ethereum’s long-term outlook.
Despite some concerns about Ethereum-based ETFs experiencing negative cumulative flows, the overall sentiment remains positive due to ongoing developments within the Ethereum ecosystem. Platforms like Aave, Pendle, and Lido, operating on ETH, are expected to drive further adoption and support the cryptocurrency’s price.
While the dominance of Ethereum in the decentralized finance (DeFi) sector remains intact, traders are keeping a close watch on the demand for Ethereum-based ETFs. The lack of demand poses a risk, but with continuous developments in the Ethereum ecosystem, a potential price turnaround could be on the horizon.
