Key takeaways:
-
ETH Net Taker Volume hit -$418.8 million, the second-largest daily sell imbalance ever.
-
Price is retesting a major resistance zone near $4,000, echoing the December 2024 top.
-
ETH could drop 25%โ35% toward key trendlines by September.
Ethereumโs native token, Ether (ETH), may establish a local top signal as its selling pressure nears historic extremes.
Traders sell 115,400 more ETH than they buy
As of Tuesday, ETHโs Net Taker Volume dropped to -$418.8 million, the second-largest daily outflow ever, with 115,400 more ETH sold than bought via market orders, according to CryptoQuant data.
Net Taker Volume tracks the difference between buying and selling executed through market orders.
These โtakerโ trades prioritize execution speed over price, typically indicating urgency or fear. When taker sells volume vastly outweighs taker buys, it often suggests capitulation or heavy profit-taking.
Such massive sell-side imbalances have historically marked local tops,โ wrote CryptoQuant analyst Maartunn, casting doubt on the sustainability of Ethereumโs current rally.
Ether may decline 25%-35% next
The latest surge in ETH sell-side pressure came as the price tests a historically significant distribution zone between $3,600 and $4,000, a level that has repeatedly acted as resistance since 2021.
Ethereum faced a similar setup in December 2024. At the time, the Net Taker Volume turned sharply negative, and ETH also traded near this same resistance zone.
What followed was a steep 66% decline, with the price collapsing toward its 50-week (the red wave) and 200-week (the blue wave) exponential moving averages (EMA).
A similar outcome may unfold, with ETH retesting the $3,600โ$4,000 resistance, Net Taker Volume plunging, and weekly relative strength index (RSI) cooling from overbought.
The confluence of bearish signals increases the probability of ETH retreating toward its 50-week and 200-week EMAs โ currently at $2,736 and $2,333, respectively โ by September or October, similar to the decline seen in late 2024.
Related: BlackRock leads record $465M spot Ether ETF Monday exodus
A drop to these support levels would mark a 25%โ35% decline from current prices.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
