Ethereum Price Decline: Why ETH’s Downtrend Could Continue

Ethereum’s price struggles to surpass the $4k mark, signalling a potential continuation of its downward trend. With recent trading patterns indicating aggressive selling, crypto traders and investors are watching closely to see if this bearish momentum will persist.

Ethereum Faces Selling Pressure

The 7-Day Moving Average of the Taker Buy Sell Ratio, which measures buyers versus seller aggression, has recently declined sharply. 

This metric suggests that sellers are dominating the market. As per an expert, such a trend indicates that many futures trends are aggressively selling Ethereum, either to speculate on future price drops or to lock in profits from previous gains.   

Ethereum is currently priced at $3,538.7, down from its recent attempt to break the $4,000 barrier. Earlier this year, ETH started at around $2,300 and climbed above $4,000 on March 11th, following a consistent uptrend from early February. However, since-mid March, ETH has been highly volatile, even plummeting below $2,900 in mid-May before a strong recovery later in the month.

Impact of Spot Ethereum ETF Approval on ETH Price 

Etheruem’s recovery in late May was bolstered by the approval of the first sport Ethereum ETFs by the U.S. Securities and Exchange Commission. This optimistic news pushed ETH to make a strong attempt to touch $4,000 on May 27th and again on June 5th. Despite these attempts, the price has since been dropping.

Ethereum Short-Term Outlook 

Given the current bearish signals from the Taker Buy Sell Ration and the recent price movements, it seems likely that Ethereum’s plummet might persist in the short-term. Cryptocurrency traders should prepare for continued volatility and potential further declines.

Stay tuned to Coinpedia for the latest cryptocurrency market updates!    

Also Read : Crypto Markets Collapsing Hard: Here’s Why Traders are Turning Bearish on Bitcoin


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