Ethereum Taker Buy/Sell Ratio Signals Potential Bullish Shift – Is ETH Ready for a Rally?
Ethereum Taker Buy/Sell Ratio: A Bullish Signal for ETH Price?
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The Ethereum (ETH) price has shown impressive resilience in recent weeks, and a leading on-chain analyst suggests this could be the beginning of a significant rally. This optimism stems from a crucial indicator – the Ethereum taker buy/sell ratio – which is signaling a potential shift in market sentiment.
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This ratio, tracked by CryptoQuant, measures the balance between taker buys and taker sells in the Ethereum market. A taker buy/sell ratio greater than 1 indicates that buying pressure outweighs selling pressure, often seen as a bullish sign. Conversely, a ratio below 1 suggests more selling activity, signaling potential bearish sentiment.
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Over the past few months, the 30-day simple moving average (SMA) of the Ethereum taker buy/sell ratio has lingered below 1, highlighting the dominance of sellers. However, a significant change has emerged. Since Ethereum found support above $2,100, the 30-day SMA has surged, reaching its highest point since mid-June.
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This recent spike in the taker buy/sell ratio signifies a potential waning of bearish pressure and a growing influence of bullish sentiment. The analyst at CryptoQuant suggests that if this upward trend continues, it could indicate that Ethereum bulls are gaining control of the market, paving the way for a potential price rally.
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ETH Price: Signs of Recovery and Profit-Taking
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As of this writing, Ethereum is trading at $2,677, experiencing a slight 0.8% dip in the past 24 hours. Despite this minor correction, the weekly timeframe reveals a 3% price increase, demonstrating a clear upward trend.
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This price recovery has also driven a surge in profit-taking among Ethereum investors. Data from IntoTheBlock indicates that the percentage of ETH addresses “in the money” has climbed from 59% to 69%, with over 80% of the ETH supply now in profit.
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The bullish signals from the taker buy/sell ratio and the increasing profit-taking activity within the ETH market paint a compelling picture for the future of Ethereum. If the current trends persist, Ethereum could be poised for a significant price rally.