Ethereum Taker Buy/Sell Ratio Is Rising Again — What It Means For ETH Price
September 29 2024 - 7:30AM
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The Ethereum price recovery has been quite impressive in recent
weeks, and an analyst has suggested that this might only be the
beginning of a good run for the altcoin. Is The Ethereum Market
Preparing For A Rally? A pseudonymous analyst has shared — via a
CryptoQuant Quicktake post — an interesting on-chain insight into
the price action of Ethereum. The relevant indicator here is the
“taker buy/sell ratio,” which measures the taker buy and taker sell
volumes for a particular cryptocurrency. When the value of this
ratio is higher than 1, it implies that the taker buy volume is
greater than the taker sell volume. This is often taken as a
bullish signal, which indicates that investors are willing to pay a
higher price for a particular asset. Related Reading: Here’s Who
Has Been Driving The Bitcoin Price Recovery Above $65,000 On the
flip side, a taker buy/sell ratio that is less than 1 suggests the
buy volume for a cryptocurrency is greater than the sell volume.
This typically signals a bearish sentiment amongst investors, as
there are more sellers ready to sell their assets at a lower price.
As shown in the highlighted chart, the 30-day simple moving average
(SMA) of the Ethereum taker buy/sell ratio has consistently
remained below the 1 threshold over the past few months. This
indicates that ETH sellers have been overwhelming buyers, resulting
in an increased token supply in the open market. However, the
30-day SMA of this metric has been on a resurgence since the price
of Ethereum found its support just above the $2,100 level. The
Ethereum taker buy/sell ratio recently reached a new high since
mid-June, indicating that the bearish pressure might be waning. The
CryptoQuant analyst noted that if the taker buy/sell ratio
continues on its upward trajectory, it could mean that the Ethereum
bulls are taking over the market. Ultimately, this level of
aggressive buying activity could set the stage for a price rally
for the altcoin. ETH Price Overview As of this writing, the Ether
token is valued at $2,677, reflecting a 0.8% decline in the past 24
hours. Despite experiencing a slight correction in the past day,
the altcoin’s price is still up by more than 3% on the weekly
timeframe. Related Reading: Maker Price Heats Up, Soars 12% In A
Week — Is $1,850 The Next Stop? Thanks to the price rally over the
past week, more Ethereum investors seem to be returning to profit.
According to data from IntoTheBlock, the percentage of ETH
addresses “in the money” went from 59% to 69%, with more than 80%
of the ETH supply now in profit. Featured image created by Dall.E,
chart from TradingView
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