Amidst the general financial market crash in early August, Ethereum (ETH) lost about 30% of its value, falling to $2,226 per unit. Notably, in the last few weeks, the prominent altcoin has displayed remarkable resilience, climbing back into the $2,600 price region. However, this recent price retracement is accompanied by considerable uncertainty about how long Ethereum can sustain such upward momentum. Commenting on this topic, CryptoQuant analyst ShayanBTC has suggested that Ethereum may likely resume its bearish course.
In a QuickTake post on Saturday, ShayanBTC shared that the Taker Buy/Sell Ratio indicated that Ethereum might be set for more price loss in the coming days. To explain, the Taker Buy/Sell Ratio is an analytical tool that measures the balance between aggressive buying and selling activity, calculated based on the volume of taker buy orders and taker sell orders.
As seen with other indicators, a Taker Buy/Sell ratio above one suggests there is upward market momentum with more aggressive buyers than sellers, whereas a ratio below one represents downward market pressure with the opposite scenario.
According to ShayanBTC, after recently failing to surpass the $3000 price resistance, Ethereum’s Taker Buy/Sell Ratio declined drastically, as evidenced by the asset’s price movement. Predictably, the metric also experienced a rebound following ETH’s recent price gains. However, the Taker Buy/Sell Ratio could not rise above 1, staying in the zero region, which indicated a lack of sufficient buying pressure, allowing sellers to retain market control.
ShayanBTC reports that the Taker Buy/Sell Ratio has once again declined, indicating that sellers are preparing to offload their assets, potentially causing an Ethereum price fall. The analyst calls for caution, stating that the ETH market will require a massive rise in demand to avoid resuming the downward price movement.
According to data from CoinMarketCap, Ethereum currently trades at $2,610, reflecting a minor 0.61% gain in the last day. However, the asset’s performance on larger time frames is still unimpressive, with a decline of 23.93% in the last month.
With persistent gains, the most prominent altcoin is set to encounter early resistance at the $2,700 price region. If buying pressure proves sufficient, ETH could move past this barrier, rising as high as $3,000. On the other hand, massive selling pressure, as indicated by the Taker Buy/Sell ratio, could force the asset’s price as low as $2,300.
