Ethereum Bears Gain Upper Hand With Escalating Sell-Off: Impact On ETH Price
05 September 2023 - 2:00PM
NEWSBTC
The Ethereum (ETH) market has been gripped by escalating bearish
sentiment as the taker buy-sell ratio, a critical indicator of
market dynamics, plunged to a yearly low. This downward trajectory
has sparked concerns among investors and traders, highlighting the
prevailing pessimism in the Ethereum futures market. ETH’s taker
buy-sell ratio, as revealed by a recent report from the anonymous
CryptoQuant analyst Greatest_Trader, has been on a consistent
decline over the past few months. The ratio reached its nadir at
the end of the previous month, signaling a growing dominance of
bears in Ethereum’s trading arena. Related Reading: Pepe Coin
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said: “This consistent behavior underscores the dominant bearish
sentiment among futures traders participating in Ethereum’s
market.” The dwindling taker buy-sell ratio is indicative of
increased sell orders, reflecting a lack of confidence in the
coin’s short-term prospects. Source: CryptoQuant Google Trends
Reflect A Loss Of Interest In Ethereum Adding to Ethereum’s woes is
the declining interest of mainstream internet users. Google Trends
data indicates that the number of searches for Ethereum (ETH) has
plummeted to levels not witnessed since November 2020. Even more
strikingly, searches for “DeFi” have dipped to four-year
lows. Source: Google Trends In the last seven days, the
metric for “Ethereum” plummeted to a dismal 8/100, a level last
seen during the crypto euphoria of 2021, where internet users were
searching for Ethereum 12 times more frequently. This decline in
interest signals a significant loss of confidence in Ethereum’s
prospects among retail investors. ETH Futures Open Interest Hits
Yearly Low The pessimism surrounding Ethereum is further
underscored by an examination of its futures open interest.
Currently standing at $4.67 billion, ETH’s open interest has
reached its lowest point this year, marking a 36% decline since its
peak on April 19. This drop in open interest reveals that
institutional and retail traders are increasingly skeptical about
the cryptocurrency’s short-term potential. As of now, Ethereum’s
price hovers at $1,622.75, with a 0.6% decline in the last 24 hours
and a 1.9% loss over the past seven days, according to CoinGecko.
Ethereum (ETH) is currently trading at $1,620. Chart:
TradingView.com Related Reading: Stellar Tough Spot: Will XLM
Prices See A Dip Amid Mid-Range Struggles? Ethereum’s
once-promising outlook is facing headwinds as bearish sentiment
prevails in its futures market. The declining taker buy-sell ratio,
coupled with a lack of interest from retail users, paints a somber
picture for the cryptocurrency. Moreover, the dwindling open
interest in Ethereum’s futures suggests that traders are hedging
their bets amid growing uncertainty. Ethereum’s journey in
the coming months will undoubtedly be a challenging one, and
investors and enthusiasts alike will be keenly watching to see if
it can weather this storm and regain its bullish momentum. (This
site’s content should not be construed as investment advice.
Investing involves risk. When you invest, your capital is subject
to risk). Featured image from Vauld
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