- Ethereum’s Taker Buy-Sell Ratio on Binance has turned positive, signaling easing sell pressure and possible market stabilization ahead.
- Despite a current ratio of 0.963, the upward trend in buying activity hints at a potential shift from Ethereum’s recent bearish phase.
- After a 40% drop since December, Ethereum’s market sentiment is improving as the Taker Buy-Sell Ratio shows early signs of recovery.
Ethereum has faced selling pressure in recent months, particularly on Binance. However, the data shown by Darkfost suggests this selling pressure is beginning to ease. The Taker Buy-Sell Ratio, which compares buy orders to sell orders in the order book, shows a promising shift in market sentiment. As the ratio flips back into positive territory, Ethereum’s market may be nearing a potential recovery.
Shifting Market Sentiment
The Taker Buy-Sell Ratio on Binance has shifted in favor of buyers. The 7-day average ratio has entered positive territory in the last few weeks. This suggests that selling pressure may be lessened, which could aid in Ethereum’s price stabilization. It’s too early to make firm judgments, though, and the trend is still feeble.
Ethereum’s September to March record of Taker Buy-Sell Ratio indicates a highly volatile price movement. Ethereum’s price started around $3,000 in early September but ended March at around $1,790. The price had a high of well over $3,750 in December before it fell. This fall coincided with increased selling pressure, which reached its peak in early December.
Analyzing the Taker Buy-Sell Ratio
The Taker Buy-Sell Ratio is the red and green lines. The reading above 1.0 (green) shows buying pressure is dominating the market, and below 1.0 (red) shows selling pressure. The current reading of 0.963 on the ratio highlights that selling pressure is still outpacing buying pressure. That being said, this ratio is shifting, and if the trend continues, it could be the end of Ethereum’s recent bearish run.
From December to March, the market sentiment has gradually improved. The lower yellow curve shows a recovery, and the upper curve predicts a potential continuation of this trend. This shift may offer some hope for Ethereum investors.
Ethereum’s price has fallen 40% from its December peak to March 31. However, the current action in the Taker Buy-Sell Ratio suggests that Ethereum’s market is bottoming out. If this trend continues, Ethereum could stabilize, providing a much-needed relief from the recent volatility.
