Amid the general financial market crash in early August, Ethereum (ETH) lost around 30% of its value, falling to $2,226 per unit. It is worth noting that in the past few weeks, the prominent altcoin has shown a great deal of resilience in climbing to the $2,600 price zone. However, this latest price drop comes with a great deal of uncertainty about how long Ethereum can maintain this upward momentum. Commenting on this interview, CryptoQuant analyst ShayanBTC posited that Ethereum is likely to resume its downward trajectory.
Ethereum Price Will Suffer From Seller Dominance
in Quick Share On Saturday, ShayanBTC noted that the taker/buy ratio suggests that Ethereum could be set for further price losses in the coming days. To clarify, the taker/buy ratio is an analysis tool that measures the balance between aggressive buying and selling activity. It is calculated based on the volume of taker buy orders and taker sell orders.
As with other indicators, a buy/sell ratio that is above one indicates bullish momentum in the market with more aggressive buyers than sellers, while a ratio that is below one represents bearish pressure in the market with the opposite scenario.
According to ShayanBTC, after recently failing to clear the price resistance at $3,000, Ethereum’s buy/sell ratio has dropped significantly as evidenced by the asset’s price action. As expected, the metric has also seen a recovery following Ethereum’s recent price gains. However, Ethereum’s buy/sell ratio failed to rise above 1 and remained in the zero area, suggesting that a lack of sufficient buying pressure is allowing sellers to maintain control over the market.
However, ShayanBTC reports that the TakerBuy/Sell ratio has dropped again, suggesting that sellers are preparing to dump their assets, which could cause the price of Ethereum to drop. The analyst urges caution, noting that the ETH market will require a massive surge in demand to avoid a resumption of the bearish price movement.
ETH Price Overview
according to Data from CoinMarketCap, Ethereum is currently trading at $2,610, reflecting a slight gain of 0.61% in the last day. However, the asset’s performance on larger time frames remains unimpressive with a 23.93% decline in the past month.
With continued gains, the most popular altcoin is set to face early resistance at the $2,700 price zone. If the buying pressure proves sufficient, ETH could break this barrier and surge to $3,000. On the other hand, massive selling pressure as indicated by the buy/sell ratio could force the asset’s price to drop to $2,300.
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