- The taker buyer-seller ratio for Ethereum, evaluated according to the 30-day simple moving average (SMA), has reached its highest level since June 23.
- As a result of Ethereum facing significant resistance around the $2,000 level, the taker buyer-seller ratio has been moving sideways since May 29.
- CryptoQuant analyst ‘Greatest_Trader’ claimed that the increase in ETH’s taker buyer-seller ratio since September 10 represents the resurgence of positive sentiment.
Analyzing Ethereum’s 30-day SMA through CryptoQuant’s data reveals its taker buyer-seller ratio is at its highest since June.
Increasing Taker Buy-Sell Ratio in Ethereum
The taker buyer-seller ratio for Ethereum, evaluated according to the 30-day simple moving average (SMA), has reached its highest level since June 23, according to data from CryptoQuant.
The taker buyer-seller ratio is a measurement that assesses the ratio between the buying volume and selling volume in the Futures market of an asset. A value greater than 1 indicates that the selling volume exceeds the buying volume, while a value less than 1 indicates that the buying volume exceeds the selling volume. A continuous decline in this metric indicates that the Futures market of the relevant asset contains more selling orders than buying orders.
As a result of Ethereum facing significant resistance around the $2,000 level, the taker buyer-seller ratio has been moving sideways since May 29. In fact, by August 28, it had fallen to its lowest level of the year.
Though it is still below 1, CryptoQuant analyst ‘Greatest_Trader’ claimed that the increase in ETH’s taker buyer-seller ratio since September 10 represents the resurgence of positive sentiment. This could potentially help boost the value of the altcoin. The analyst stated:
“This increase seems to indicate a change in sentiment among market participants and suggests a shift towards a more bullish stance. If this metric continues to trend upward and move into the positive territory, it could herald the beginning of a new period characterized by bullish price action for Ethereum. In this scenario, the price of Ethereum may rise and target higher resistance levels.”
ETH Currently Offers Little Returns
While positive sentiments could return to Ethereum’s Futures market, the overall market appears to be filled with bearish activity. This is evident from the continuous decline in the number of profitable transactions.
According to Santiment, the ratio of daily transaction volume that includes profitable transactions to total transaction volume for ETH has decreased over the past month. The current value of 0.85 indicates that only 0.85 out of every ETH transaction resulted in profit, suggesting that the majority ended in losses.
Furthermore, the Market Value to Realized Value (MVRV) ratio of the coin has decreased since reaching its peak at 23% on July 29. This measurement tracks times when an asset becomes overvalued or undervalued in relation to its historical price movements and the price at which it was last moved. Finally, the number of ETH holders who would profit from selling their coins has rapidly decreased since the end of July.
