According to Cointelegraph, Ethereum's native token, Ether (ETH), is experiencing significant selling pressure, which could signal a local top. On Tuesday, ETH's Net Taker Volume reached -$418.8 million, marking the second-largest daily sell imbalance ever recorded. This figure indicates that traders sold 115,400 more ETH than they purchased through market orders, as reported by CryptoQuant data. Net Taker Volume measures the difference between buying and selling executed via market orders, often reflecting urgency or fear among traders. When the sell volume significantly surpasses the buy volume, it typically suggests capitulation or heavy profit-taking. CryptoQuant analyst Maartunn noted that such substantial sell-side imbalances have historically marked local tops, raising doubts about the sustainability of Ethereum's current rally.
The recent surge in ETH sell-side pressure coincides with the price testing a historically significant distribution zone between $3,600 and $4,000. This level has consistently acted as resistance since 2021. Ethereum encountered a similar situation in December 2024, when the Net Taker Volume turned sharply negative, and ETH traded near this resistance zone. Subsequently, the price experienced a steep 66% decline, collapsing toward its 50-week and 200-week exponential moving averages (EMA). A similar scenario may unfold, with ETH retesting the $3,600–$4,000 resistance, Net Taker Volume plunging, and the weekly relative strength index (RSI) cooling from overbought levels. The convergence of bearish signals increases the likelihood of ETH retreating toward its 50-week and 200-week EMAs, currently at $2,736 and $2,333, respectively, by September or October. Such a drop would represent a 25%–35% decline from current prices. Readers are advised to conduct their own research when making investment decisions, as this article does not provide investment advice or recommendations.
