- Traders are selling Ethereum most aggressively since May ’22.
- The difference between the metrics known as “Taker Buy Volume” and “Taker Sell Volume was used.
- Ethereum is trading at $1,534.4 with a 24-hour trading volume of $4,778,236,480.
Traders of Ethereum, the second biggest cryptocurrency, have been selling most aggressively since May 22, 2022, according to a new gauge that was developed by Cryptoquant, which specializes in crypto analytics.
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In a more tangible sense, these traders are withdrawing their participation from the market via the use of market orders, which is bringing the price down.
Cryptoquant makes use of a statistic that was developed with the help of the CryptoQuant API and reveals the level of competition among market sellers and purchasers. The analyst computed the difference between the metrics known as “Taker Buy Volume” and “Taker Sell Volume” in order to further illustrate how aggressive this behavior was.
According to popular belief, market players who utilize something called a market order are eager to buy or sell at any price. They are unconcerned about receiving a poor deal or paying an excessive amount in fees.
They are just interested in escaping from that circumstance. The fact that the analyst did not take into account liquidations is a significant caveat since these are trades that are closed off by necessity.
It is important to note that when prices are still reasonably high but Net Taker Volume is firmly in the red, this is the time when the indicator sends the strongest signal. And this is the state that Ethereum is in at the moment.
However, as long as Net Taker Volume continues to display negative values, it is preferable to sell the rip rather than purchase the dip. This does not imply that Ethereum cannot see a short-term recovery, but it does suggest that it is more prudent to sell the rip than to buy the dip.
According to Coinmarketcap data, Ethereum is trading at $1,534.4 with a 24-hour trading volume of $4,778,236,480.
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