Amid the general financial market crash in early August, Ethereum (ETH) lost about 30% of its value, falling to $2,226 per unit. In particular, over the past few weeks, the prominent altcoin has shown great resilience, climbing back to the $2,600 price region. Although this latest price pullback is accompanied by a lot of uncertainty about how long Ethereum will be able to maintain such bullish momentum. Commenting on the dialogue, CryptoQuant analyst ShayanBTC hypothesized that Ethereum will likely resume its bearish course.
Ethereum price will suffer due to seller dominance
IN QuickTake Post on Saturday, ShayanBTC reported that the Taker Buy/Sell Ratio indicator indicates that Ethereum may be poised for a larger price loss in the coming days. To explain, the Taker Buy/Sell Ratio indicator is an analytical tool that measures the balance between aggressive buying and selling activity. It is calculated based on the volume of taker buy and sell orders.
As with other indicators, a Taker Buy/Sell ratio above one suggests that the market momentum is bullish and there are more buyers than sellers, while a ratio below one indicates bearish market pressure and the opposite scenario.
According to ShayanBTC, after the recent failure to break through the $3,000 price resistance, Ethereum’s Taker Buy/Sell Ratio has fallen drastically, as evidenced by the asset’s price movement. As expected, the indicator also saw a rebound after the recent ETH price gains. Although, the Taker Buy/Sell Ratio could not rise above 1, remaining in the zero area, indicating a lack of sufficient buying pressure, allowing sellers to maintain control over the market.
However, ShayanBTC reports that the TakerBuy/Sell Ratio has fallen again, indicating that sellers are preparing to dump their holdings, which could potentially cause the Ethereum price to fall. The analyst urges caution, stating that the ETH market will require a massive boost in demand to avoid a resumption of the downward price movement.
ETH Price Overview
According to data from CoinMarketCap, Ethereum is currently trading at $2,610, reflecting a modest 0.61% boost over the past day. However, the asset’s performance on longer time frames is still not impressive, with a 23.93% decline over the past month.
With steady gains, the most prominent altcoin is expected to encounter early resistance near the $2,700 price level. If the buying pressure proves to be sufficient, ETH could break through this barrier, rising as high as $3,000. On the other hand, massive selling pressure, indicated by the Taker Buy/Sell ratio, could force the asset price to fall towards $2,300.
