The cryptocurrency market has experienced a surge in buying activity, leading to a relief rally for several digital assets. Ethereum, in particular, has deviated from its previous corrective path and quickly rebounded from the $1,550 range to reach $1,635.
However, this bullish turnaround may have more significance. According to CryptoQuant’s latest analysis, Ethereum bulls could be taking control of the market.
CryptoQuant’s ‘Taker Buy Sell Ratio’ metric, along with a 30-day simple moving average, closely monitors Ethereum’s price dynamics. It serves as an indicator to assess whether buyers or sellers are displaying greater aggression in executing their orders. Positive values typically indicate a bullish sentiment, while negative values are considered bearish indicators.
It’s worth noting that Ether has been on a downtrend in recent weeks, facing multiple rejections around the $2,000 resistance threshold. The ‘Taker Buy Sell Ratio’ metric has consistently remained in negative territory for the past several months, reflecting a continued bearish sentiment in the futures market towards the cryptocurrency.
However, there has been a notable shift in this metric as it abruptly spiked, approaching the neutral 0 line. This surge suggests a potential transformation in market sentiment, indicating a shift towards a more bullish outlook.
According to the crypto intelligence platform, if the metric continues its upward trend and enters positive territory, it may signal the beginning of a new phase characterized by bullish price movements. In this scenario, Ether’s price could experience an upswing, potentially targeting higher resistance levels.
Ether has witnessed a 65% drop in value since its all-time high in 2021. Some token holders may have been experiencing difficulties due to “capitulation signs” during its six-month lows. Interestingly, capitulation events often precede a price rebound, a consensus held by many market cycle experts.
Santiment’s latest analysis has referred to the current situation as a “historical anomaly” that could serve as a significant “capitulation signal,” potentially paving the way for a price recovery in the near future.
This notion aligns with the idea that Ethereum’s price might see an upturn soon, especially as many holders may have had to realize losses, potentially marking the end of a market cycle.
It’s important to stay updated on the latest developments in the cryptocurrency market as Ethereum’s price dynamics continue to evolve.
Sources:
– CryptoQuant: [Link to Source](https://cryptoquant.com/insights/quicktake/6506c68e21ae640b03696f85-Are-the-Ethereum-Bull-Taking-Control-of-the-Market?utm_source=telegram&utm_medium=sns&utm_campaign=Quicktake&utm_content=Greatest_Trader)
– Santiment’s Analysis: [Link to Source](https://twitter.com/santimentfeed/status/1702255181789102512)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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