Ethereum faced heightened selling pressure for a lengthy period due to the volatility in the broader crypto market, causing its price to undergo a sharp pullback close to the $1,400 mark. However, recent trends show that ETH seems to be entering a calmer phase as bulls are gradually taking control of the market in anticipation of a rebound.
Decreasing Ethereum Sell-Side Pressure On Binance
Although Ethereum’s price has declined sharply below key support levels, investors’ sentiment is starting to shift toward a more positive outlook. A report from Darkfost, an on-chain data and technical expert, reveals bullish behavior from investors on one of the world’s largest cryptocurrency exchanges, Binance.
As reported by Darkfost, ETH is showing early signs of a potential turnaround to a calmer phase on Binance, as selling pressure appears to be slowly fading. This suggests a decrease in the amount of ETH being offloaded by traders and investors on the platform, marking an encouraging moment for the altcoin and its price trajectory.
The drop in sell-side pressure on the crypto exchange is a sign that bears or sellers are losing control of the market after a period of intense downward movement in ETH’s price. Darfost revealed the development after a thorough examination of the Ethereum Taker Buy Sell Ratio metric on Binance.Â
Specifically, the taker buy-sell ratio is a key metric that compares the volume of buy orders to the volume of sell orders in the order book. Furthermore, it aids in visualizing the prevailing tendency, which appears to be changing at the moment.
A 7-day Simple Moving Average (SAM) view of the taker buy-sell ratio shows that the volume has flipped into positive territory, rising above level 1. Looking at the chart, the recent move above the level marks the third time since the beginning of this year, indicating investors’ resilience in volatile periods.
In the meantime, the easing selling pressure may act as a launchpad for price stabilization or a price recovery in the short term as bullish momentum picks up. Darkfost highlighted that it might contribute to the formation of a bottom and, at the very least, temporarily stop the bloodbath in Ethereum if the pattern persists.
However, the expert noted that the trend is still too weak to make any clear conclusions, even though it is an encouraging sign for Ethereum’s price dynamics. Thus far, Investors are closely monitoring whether bulls can take advantage of the change and propel ETH toward a short-term recovery.
ETH Breaks Out Of A Multi-Year Pattern
The easing selling pressure might have raised the possibility of ETH experiencing a rebound in the short term. However, the altcoin‘s pullback is more likely to extend after its recent drop below a key chart pattern.
Following his examination of Ethereum’s price action, Ali Martinez, a seasoned crypto analyst, has identified a massive multi-year Triangle formation, which ETH has fallen below. According to the analyst, its break below the pattern would lead to an extension of the ongoing pullback, with ETH dropping as low as $1,105 in the upcoming months.
Featured image from Unsplash, chart from Tradingview.com
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