Ethereum took perhaps the biggest hit of all large-cap altcoins in February, with its value falling more than 36% over the past month. The second-largest cryptocurrency has deepened its woes over the past week as it struggles to keep its price above the $2,000 mark.
On Friday, February 27, Ethereum’s price fell by more than 5%, falling just above the $1,900 level. Interestingly, a recent on-chain rating shows a potential reason for the altcoin’s recent struggles below $2,000.
ETH Taker volume continues to grow on Friday
In a February 27 post on the social media platform, cryptocurrency expert Maartunn revealed the source of the recent bearish pressure witnessed by the Ethereum price. The relevant chain indicator is Taker’s sales volume, which recorded steady increases across all exchanges throughout Friday.
For context, the Taker Sell Volume indicator measures the total volume of sell orders filled by takers (market participants who match existing orders created by market makers) in Ethereum perpetual swaps. Therefore, an escalate in the indicator can be interpreted as a bear signal, suggesting that the market is flooded with sell orders.
As you can see in the chart above, Ethereum Taker sales volume increased to as much as 105 million ETH on Friday. This provides some context for the drop in the ETH price observed that day, as the acute escalate in this indicator is a sign of previous high selling pressure in the market.
The price of ETH, which started the day above the $2,000 level, soon dropped to around $1,920 as the weekend approached.
Etherum Price Overview
At the time of writing, ETH is trading at around $1,925, reflecting a decline of over 5% in the last 24 hours. However, the action last week was relatively tame, with the second-largest cryptocurrency losing almost 2% of its value over the past seven days.
The selling pressure that the Ethereum price has seen over the past day is nothing fresh, as it has been the case over the past few weeks. This trend can be seen in the recent performance of ETFs.
According to the latest market data from US Ethereum ETFs, investors have withdrawn approximately 563,600 ETH (worth almost $1.13 billion) over the past five weeks. This significant ETF outflow highlights the shift in investor sentiment and demand since the last week of January.
Market sentiment and demand need to turn bullish for the ETH price to experience a bullish reversal soon.
Featured image from iStock, chart from TradingView
