Ethereum (ETH) continues to feel a pullback in its price, as it recently tested the $4,000 resistance level, a key psychological price mark for the cryptocurrency. Amid this correction, bearish trends among investors on Binance have surfaced.
A recent analysis from crypto analyst Darkfost highlights a significant trend where Binance’s taker buy ratio for Ethereum has become “strongly negative” at the $4,000 mark. This suggests that traders on the exchange have primarily taken a selling position.
Ethereum war shot
According to Darkfost, Binance sentiment has persisted since early November, coinciding with Ethereum approaching this critical resistance level.
The analyst pointed out that while this bearish sentiment could generally signal a potential reversal, Ethereum’s price movement has defied a strong bearish inclination, driven by other influential factors.
Notably, demand for Ethereum exchange-traded funds (ETFs) has increased, presenting growing institutional interest that continues to support Ethereum price action.
The sharp increase in demand for ETFS indicates a shift in market position where institutional players are increasingly influencing price movements.
Institutional interest, highlighted by consistent inflows into Ethereum-focused investment products appears to have been key in offsetting the selling pressure seen among retail traders on Binance.
eth market performance and outlook
So far, Ethereum has seen a significant correction in its price decreasing to as low as $3,616 today. At the time of writing, the asset is currently trading at a price of $3,621 by almost 6% over the past day.
Notably, this price performance unsurprisingly lowered the asset’s market capitalization by more than $40 billion, falling from more than $490 billion last week Friday to $434 billion today.
Interestingly, despite this price drop, Ethereum’s daily volume saw an opposite trend rising from less than $60 billion on December 6 to $72 billion. Given the current market state, it is likely that the increase in ETH volume is coming from sales.
According to Coinglass data, in the last 24 hours, 526,828 traders were liquidated with the total liquidations at $1.58 billion. Of this total liquidations, ETH represents approximately $234.72 million.
Long liquidations dominate at $208.83 million. Short traders also suffered their share losses recording $25.89 million in ETH liquidations.
Regardless, analysts are still bullish on Ethereum, suggesting that the current price decline is quite “healthy” for the ETH market.
$Eth Stay strong in HTF!#Ethereum Weekly sound correction will be left as a retest and pumped hard! pic.twitter.com/YSIXFQJULQ
– eᴛʜᴇʀnᴀꜱᴀꜱl
(@Etherasyonal) December 10, 2024
(@Etherasyonal) Featured image created with Dall-E, chart from TradingView
