Ethereum To Remain Under Bearish Pressure As Taker Buy/Sell Ratio Drops
August 18 2024 - 6:00AM
NEWSBTC
Amidst the general financial market crash in early August, Ethereum
(ETH) lost about 30% of its value, falling to $2,226 per unit.
Notably in the last few weeks, the prominent altcoin has shown much
resilience climbing back into the $2,600 price region. Albeit, this
recent price retracement is accompanied by much uncertainty on how
long Ethereum can sustain such upward momentum. Commenting on this
dialogue, CryptoQuant analyst ShayanBTC has postulated that
Ethereum may likely resume its bearish course. Related Reading:
Ethereum Price Wobbles As Inflation Sees 210,000 Added To
Circulation Ethereum Price To Suffer From Sellers’ Dominance
In a QuickTake post on Saturday, ShayanBTC shared that the Taker
Buy/Sell Ratio indicated that Ethereum may be set for more price
loss in the coming days. To explain, the Taker Buy/Sell Ratio is an
analysis tool that gauges the balance between aggressive buying and
selling activity. It is calculated based on the volume of taker buy
orders and taker sell orders. As common with other
indicators, a Taker Buy/Sell ratio above one suggests there is an
upward market momentum with more aggressive buyers than sellers and
a ratio below one represents a downward market pressure with the
opposite scenario. According to ShayanBTC, after recently failing
to surpass the $3000 price resistance, Ethereum’s Taker Buy/Sell
Ratio declined drastically as evidenced by the asset’s price
movement. As expected, the metric also experienced a rebound
following ETH’s recent price gains. Albeit, the Taker Buy/Sell
Ratio could not rise above 1 staying in the zero region, which
indicated a lack of sufficient buying pressure allows the sellers
to retain market control. However, ShayanBTC reports that the
TakerBuy/Sell Ratio has once again declined indicating that sellers
are preparing to offload their assets, potentially causing an
Ethereum price fall. The analyst calls for caution, stating that
the ETH market will require a massive rise in demand to avoid
resuming the downward price movement. Related Reading: Brace For
Impact: Ethereum Price Could Plunge To $1,200 In December, Says
Expert ETH Price Overview According to data from CoinMarketCap,
Ethereum currently trades at $2,610 reflecting a minor 0.61% gain
in the last day. However, the asset’s performance on larger time
frames is still unimpressive with a decline of 23.93% in the last
month. With persistent gains, the most prominent altcoin is set to
encounter an early resistance at the $2,700 price region. If buying
pressure proves sufficient, ETH could move past this barrier rising
as high as $3,000. On the other hand, a massive selling
pressure as indicated by the Taker Buy/Sell ratio can force the
asset’s price as low as $2300. Featured image from Adobe Stock,
chart from Tradingview
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