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Ethereum's price has rallied 30% in a week, leaving investors unsure about what comes next.
CryptoQuant believes a rise in the Taker Buy/Sell Ratio ratio indicates a less aggressive approach to selling by the bears
Increased Ethereum inflows into exchanges also indicate incoming high trading volumes and incoming price swings.
Large Ethereum purchases from the US likely came from institutions, after anonymous sources bought $400 million $ETH in mere days
The current Ethereum buying pattern resembles the activity before the Bitcoin ETF approval in January 2024.
Ethereum had a very busy week so far, considering the business with the SEC and the ongoing ETF applications.
The cryptocurrency has rallied by around 30% over the last week alone, and investors aren’t sure what to make of this.
Will Ethereum's rally continue? Will we see a break above the psychological $4,000 zone soon? Or is this another massive bull trap, waiting to happen?
Insights from CryptoQuant on Ethereum have been quite interesting this week, and here are some of the top outlooks for why the cryptocurrency is now behaving the way it is.
This week, CryptoQuant took to Twitter to mention that there is currently an upward trend in the Taker Buy Sell Ratio for Ethereum.
This means that there is an incoming shift in market dynamics, in favour of the bulls. And if this indicator continues to rise, it might mean that the bears are easing up on the selling and are taking a less aggressive approach towards trading.
Ethereum futures sentiment is turning green
In detail, CryptoQuant’s analysts note that The Taker Buy Sell Ratio has been trading below the “1” mark over the last few months, indicating that the leveraged bears have been more active than ever.
However, the report also outlined that this metric has been increasing, and is coinciding with Ethereum’s rising prices.
This means that if the bulls keep up the momentum, they can create and sustain an uptrend that takes Ethereum into its next bull run.
According to the head of research at CryptoQuant, Julio Moreno, Ethereum’s net flows into exchanges have been the highest since March.
Ethereum’s exchange inflows
Moreno mentioned that these investors sending their ETH into exchanges have been doing so mostly with Binance and ByBit, which might be a solid indicator that Ethereum’s trading volumes, and thus its volatility are about to skyrocket.
This is something investors may need to keep in mind, considering how the crypto market tends to switch and reverse at a moment’s notice.
According to CryptoQuant, Unknown investors in the US bought more than $400 million worth of $ETH on three different days in 2024.
US investors buying ETH
CryptoQuant mentioned that these massive Ethereum buys were mostly from Coinbase, and are very likely tied to the incoming spot Ethereum ETFs in the US.
The data aggregation platform also noted that something similar to this happened right around the time of the Bitcoin ETF approvals in January 2024.
CryptoQuant opined that these inflows might have been from institutions rather than individuals, considering how it seems “overly optimistic” to assume that individuals managed to scoop up such large amounts of the cryptocurrency in mere days.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.