Potential for Continued Downtrend in Ethereum Price Factors Behind ETHs Decline
Ethereum’s price is struggling to break the $4,000 mark, indicating a possible continuation of its downward trajectory. Recent trading patterns show aggressive selling, causing crypto traders and investors to closely monitor if this bearish momentum will persist.
Facing Selling Pressure
The 7-Day Moving Average of the Taker Buy Sell Ratio, which measures buyer versus seller aggression, has experienced a significant decline.
This data suggests that sellers are currently dominating the market. According to experts, this trend reveals that many futures traders are aggressively selling Ethereum, either to speculate on future price drops or to secure profits from previous gains.
Historical Price Trends of Ethereum
Ethereum is currently valued at $3,538.7, falling from its recent attempt to surpass the $4,000 mark. At the beginning of the year, ETH was trading around $2,300 and reached above $4,000 on March 11th, following a steady uptrend from early February. However, since mid-March, ETH has been highly volatile, even dropping below $2,900 in mid-May before a significant recovery later in the month.
Impact of Spot Ethereum ETF Approval on ETH Price
The late May recovery of Ethereum was supported by the approval of the first spot Ethereum ETFs by the U.S. Securities and Exchange Commission. This positive development led ETH to make strong efforts to reach $4,000 on May 27th and again on June 5th. Despite these efforts, the price has since been on a decline.
Short-Term Outlook for Ethereum
Considering the bearish signals from the Taker Buy Sell Ratio and recent price movements, it appears likely that Ethereum’s decline may continue in the short term. Cryptocurrency traders should be prepared for ongoing volatility and potential further drops.
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Crypto Markets Experiencing Significant Decline: Why Traders are Turning Bearish on Bitcoin
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