Aug 19, 2024 12:05
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, Ethereums Taker Buy/Sell Ratio declined drastically as evidenced by the assets price movement. As expected, the metric also experienced a rebound following ETHs 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 assets 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 assets price as low as $2300. Featured image from Adobe Stock, chart from Tradingview
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