Since the general drop in the value of the stock market in early August, Ethereum (ETH) has been under a lot of stress. During that time, the cryptocurrency lost 30% of its value, going down to $2,226. ETH has recently risen again to around $2,600, but it’s still not clear how long this upward trend will last.
ShayanBTC, a cryptoquant expert, says that Ethereum may soon be hit by new downward trends.In a QuickTake post on Saturday, ShayanBTC pointed out that Ethereum’s Taker Buy/Sell Ratio, which is a key measure of how the market feels, suggests that prices could go down even more.
Ethereum Price Could Drop Further
The Taker Buy/Sell Ratio shows how much active buying and selling there is. If the ratio is above one, it means that buyers are more bold and prices are going up. If the ratio is below one, it means that prices are going down and sellers are more active.
Ethereum’s Taker Buy/Sell Ratio dropped a lot after failing to break through the $3,000 barrier level. This was in line with the price changes of the asset. The ratio briefly went back up when the price of ETH went up recently, but it stayed below 1, which means there wasn’t enough buying pressure to question the seller dominance.
ShayanBTC says that the Taker Buy/Sell Ratio has dropped again, which means that sellers are likely to sell their shares, which could cause the price of Ethereum to drop. The expert warns people to be careful and stresses that demand needs to rise significantly to stop prices from falling even more.
The most recent data from CoinMarketCap shows that Ethereum is now worth $2,610. This is a small increase of 0.61% over the last 24 hours. But in the last month, the value of the coin has dropped 23.93%. Early on, Ethereum might run into trouble at $2,700, but it could go up to $3,000 if buyers get stronger. On the other hand, the Taker Buy/Sell Ratio shows that there is strong selling pressure, which could drive the price down to $2,300.
