Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
What Could Indicate a Signal for Ethereum’s Price?

What Could Indicate a Signal for Ethereum’s Price?

Cryptodnes2024/09/29 17:06
By:Cryptodnes

Ethereum has shown a remarkable price recovery in recent weeks, leading some analysts to suggest that this could be just the beginning of a promising trend for altcoin.

One of them recently shared an intriguing analysis regarding Ethereum’s price movement in a post on CryptoQuant. The focus of the analysis is “buy/sell“, which estimates transaction volumes for a specific cryptocurrency .

When this ratio exceeds 1, it indicates that the volume of purchases exceeds the volume of sales, which is often seen as a bullish sign suggesting that investors are willing to pay more for the asset.

Conversely, a buy/sell ratio below 1 means that the volume of sales is greater than the volume of purchases, which usually reflects bearish sentiment among investors as more sellers are willing to part with their assets at lower prices.

READ MORE:
Here is How This Crypto Analyst Made $10 Million Last Bull Run

As shown in the highlighted chart, the 30-day simple moving average (SMA) of Ethereum’s bid/ask ratio has remained below the 1 threshold for the past several months. This trend indicates that there are more sellers than buyers, leading to an increase in the supply of tokens on the open market.

What Could Indicate a Signal for Ethereum’s Price? image 0

However, there has been a recent rise in the 30-day SMA after Ethereum found support just above the $2,100 mark. The buy/sell ratio of buyers has now reached its highest level since mid-June, suggesting that bearish pressure may be easing.

The analyst stressed that if the buy/sell ratio continues to rise, it could signal a change in favor of the bulls in the Ethereum market. This level of active buying could pave the way for a potential rally in altcoin prices.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Trump Backs Crypto at Summit with Bold Plans

Trump reveals crypto reserve strategy, stablecoin regulation, and U.S. leadership goals at crypto summit.Clear Rules Ahead: Stablecoin Regulation FrameworkMaking the U.S. the Global Crypto Capital

Coinomedia2025/03/21 08:11
Trump Backs Crypto at Summit with Bold Plans

Bitnomial Launches First XRP Futures Contracts in US

Bitnomial introduces the first CFTC-approved XRP futures in the US, offering physically settled contracts to crypto traders.What This Means for Crypto TradersGrowing Regulatory Confidence in XRP

Coinomedia2025/03/21 08:11
Bitnomial Launches First XRP Futures Contracts in US

TRX Tokens Now Live on Solana Blockchain

TRX officially launches on Solana, offering faster, cheaper transactions for users and new opportunities for cross-chain DeFi.TRX Launches on Solana NetworkWhat This Means for TRX UsersThe Future of Cross-Chain TRX Usage

Coinomedia2025/03/21 08:11
TRX Tokens Now Live on Solana Blockchain