As a seasoned researcher with years of experience delving into the complex world of cryptocurrencies, I can say with some confidence that the recent surge in Ethereum price is indeed intriguing. The taker buy/sell ratio analysis presented by this CryptoQuant analyst seems to align with my own observations.
In the past few weeks, the Ethereum price rebound has been noteworthy, leading some experts to believe that it could signal the start of a prolonged period of growth for this alternative cryptocurrency.
Is The Ethereum Market Preparing For A Rally?
A pseudonymous analyst has shared — via a CryptoQuant Quicktake post — an interesting on-chain insight into the price action of Ethereum. The relevant indicator here is the “taker buy/sell ratio,” which measures the taker buy and taker sell volumes for a particular cryptocurrency.
If the given ratio exceeds 1, it generally means that the amount of buying activity surpasses the selling activity, which is typically viewed as a bullish sign. This suggests that investors are more inclined to buy a specific asset at a relatively higher cost.
In other words, when the number of buyers compared to sellers for a cryptocurrency is less than 1 (taker buy/sell ratio), it means that more people are buying than selling. This pattern usually indicates a negative outlook among investors since there are more individuals willing to sell their assets at a lower price.
Over the last several months, I’ve noticed that my analysis reveals the 30-day simple moving average (SMA) of Ethereum’s taker buy/sell ratio persistently stays below 1. This trend suggests that sellers have been dominating buyers in the market, leading to a higher supply of Ethereum tokens available for purchase.
Instead, note that the 30-day Simple Moving Average of this metric has been rising steadily since the price of Ethereum stabilized around $2,100. Furthermore, the Ethereum buy/sell ratio for takers has recently hit a new peak since mid-June, suggesting that the bearish trend could be easing off.
According to the analysis by CryptoQuant, if the number of people buying or selling Ethereum continues to increase, it might signal that Ethereum buyers are dominating the market. This heavy buying activity could potentially trigger an upward trend in Ethereum’s price.
ETH Price Overview
In my current analysis, I find that the Ether token is currently valued at approximately $2,677, representing a minor 0.8% decrease over the past 24 hours. However, it’s important to note that even with this slight correction, the value of this altcoin has increased by more than 3% when considering the weekly timeframe.
Over the past week’s price surge, it appears that many Ethereum investors are once again seeing a return on their investment. As per IntoTheBlock’s data, the proportion of Ethereum addresses yielding a profit has increased from 59% to 69%. Now, over 80% of the Ethereum supply is in a profitable state.
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2024-09-29 15:40