Analyst Reveals Why Ethereum Is Underperforming Against Bitcoin
02 November 2023 - 1:00AM
NEWSBTC
Ethereum has been notably underperforming Bitcoin through this
latest rally. Here’s why this is so, according to a CryptoQuant
analyst. Ethereum Net Taker Volume Has Been Mostly Negative
Recently In a new post on X, CryptoQuant Netherlands community
manager Maartunn has pointed out what the “net taker volume” for
Ethereum is looking like. The net taker volume here is an indicator
that keeps track of the difference between the taker buy volume and
taker sell volume on the Bitcoin futures market. When the value of
this metric is positive, it means that the taker buy volume is
dominating the taker sell volume right now. Such a trend implies
buying pressure may be strong in the market currently. Related
Reading: Bitcoin Whales Ramp Up Selling, BTC To Decline Below
$32,000? On the other hand, negative values could suggest the
presence of a bearish sentiment among the investors, as selling
pressure is higher than the buying pressure. Now, here is a chart
that shows the trend in the 30-day moving average (MA) Ethereum net
taker volume over the past few years: Looks like the 30-day MA
value of the metric has been near the neutral mark in recent days |
Source: @JA_Maartun on X As displayed in the above graph, the
Ethereum net taker volume has been mostly negative during the past
few months, implying that sentiment around the asset has remained
bearish. Bitcoin, on the other hand, has enjoyed periods where the
taker buy volume has surpassed the taker sell volume, as the chart
shared by the analyst a few days back showed. The 30-day MA value
of the indicator seems to have been green in the last few weeks |
Source: @JA_Maartun on X Most notably, the net taker volume of
Bitcoin is significantly positive right now, suggesting the strong
buying pressure present in the market. Unsurprisingly, BTC’s sharp
rally has come alongside these positive values of the metric.
Related Reading: Ethereum Bearish Signal: MVRV Has Entered The
“Danger” Zone Ethereum has no such buying pressure present at the
moment. Maartunn believes this is why the ETH price has been
performing considerably poorly against BTC recently. Ethereum Has
Still Not Touched The Highs Set Earlier In The Year Ethereum’s
underperformance against Bitcoin is easily visible in the asset’s
year-to-date chart. ETH has enjoyed some rise during the past month
| Source: ETHUSD on TradingView At the same time as Bitcoin
observed its rally off the back of the highly positive net taker
volume, Ethereum also saw a surge of its own. This rise, though,
has been nowhere near as sharp as that of the original
cryptocurrency, as ETH is still just trading around $1,800, which
is notably less than the top of around $2,100 that the asset set
back in April. Not only has Bitcoin surpassed the $31,000 top it
set back in July, it has also done so in spectacular fashion, as
it’s now trading above the $34,000 level, which is significantly
higher. If the net taker volume is anything to go by, the second
largest cryptocurrency may continue to underperform versus the
largest, so long as investor sentiment around it remains negative.
Featured image from DrawKit Illustrations on Unsplash.com, charts
from TradingView.com, CryptoQuant.com
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