Ethereum Faces Continued Bearish Pressure as Taker Buy/Sell Ratio Declines

In early August, Ethereum (ETH) faced a significant drop in value, losing around 30% and plummeting to $2,226 per unit amid a broader financial market downturn. However, in recent weeks, this leading altcoin has displayed remarkable resilience by bouncing back to the $2,600 price level. Despite this apparent recovery, there are lingering doubts about how sustainable Ethereum’s upward trajectory will be going forward. Analyst ShayanBTC from CryptoQuant has suggested that Ethereum might revert to a bearish trend.

ShayanBTC highlighted the potential for Ethereum’s price to suffer due to the dominance of sellers in a recent QuickTake post. The Taker Buy/Sell Ratio, a key metric used to assess the balance between aggressive buying and selling activities, indicated a likelihood of further price declines for Ethereum in the near future. This ratio is calculated based on the volume of taker buy and sell orders. A ratio above one typically signals bullish market momentum with more aggressive buyers, while a ratio below one signifies 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 some recovery in the metric following Ethereum’s recent price gains, it failed to surpass 1, remaining in the zero range. This situation suggested a lack of substantial buying pressure, allowing sellers to maintain control of the market.

ShayanBTC warned that the Taker Buy/Sell Ratio had once again decreased, indicating that sellers were gearing up to sell their assets, potentially triggering a price drop for Ethereum. The analyst emphasized the need for caution, noting that a significant surge in demand would be necessary to prevent a resumption of the downward price trend.

Currently, Ethereum is trading at $2,610, reflecting a modest 0.61% increase in the last 24 hours, according to data from CoinMarketCap. However, the altcoin’s performance over longer time frames remains lackluster, with a decline of 23.93% in the past month. Looking ahead, Ethereum faces initial resistance at the $2,700 price level, with the potential to surpass this hurdle and reach $3,000 if buying pressure persists. Conversely, intense selling pressure, as indicated by the Taker Buy/Sell ratio, could drive Ethereum’s price down to $2,300.