The cryptocurrency market has been quite volatile lately. Ethereum (ETH) is showing signs it might rally to $3,000. The taker buy/sell ratio for Ethereum (ETH) has skyrocketed recently. This ratio compares the volume of buy trades to sell trades. A ratio below 1 usually signals a bearish sentiment.
A taker refers to a market order, meaning they’re ready to pay a bit extra to get the trade done right away. This ratio can give you a sense of overall market sentiment.
Ethereum set for recovery
On July. 31, Ethereum traded at $3,200. Since July. 20, the taker buy/sell ratio has shown a negative trend, signaling a dominant bearish sentiment. After the drop on Aug. 5, the market bounce led to more long positions. The Aug. 8 and 23rd spikes look positive but might not mean a long-term recovery.
Ethereum’s movement from exchanges might give us more insight. On the 23rd, a large amount of ETH left the exchanges, suggesting accumulation. After the early Aug price drop, the 14-day simple moving average is now back on its downward trend. This was an encouraging sign and might drive prices towards the $3k resistance level.
Should traders expect a $3K breakout?
The 30-day MVRV has moved into positive territory, suggesting that short-term holders see a small profit. However, the 90-day MVRV remains significantly negative. On a different note, the average coin age has steadily increased over the past three weeks.
This indicated a network-wide buildup, backing up the positive outlook from the netflows metric. However, the age-consumed metric spiked significantly, showing a surge in token movement. The drop in network gas fees might lead to more ETH in circulation, which could negatively impact ETH’s value in the long run.
These kinds of movements usually indicate that selling is about to increase. Traders should be cautious about selling pressure over the weekend and stay alert during Monday’s trading session.
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