Here’s Why Ethereum Slipped Below $2,000 – Details | Crypto News
Ethereum has maybe taken the most important hit of all the large-cap altcoins in February, with its worth dropping by more than 36% over the past month. The second-largest cryptocurrency deepened its woes over the past week, struggling to keep its price above the $2,000 degree.
On Friday, February twenty seventh, the price of Ethereum fell by more than 5%, falling to just above the $1,900 mark. Interestingly, a current on-chain analysis exhibits the potential motive behind the altcoin’s latest struggles below $2,000.
ETH Taker Volume Sees Steady Rise On Friday
In a February twenty seventh post on the social media platform, crypto pundit Maartunn revealed the source of the current bearish strain witnessed by the Ethereum price. The related on-chain indicator right here is the Taker Sell Volume, which noticed regular spikes across all exchanges throughout Friday.
For context, the Taker Sell Volume metric measures the full quantity of promote orders crammed by takers (market contributors who match current orders created by market makers) in Ethereum perpetual swaps. Hence, a rise in the indicator could be interpreted as a bearish signal, implying that the market is being flooded with promote orders.
As noticed in the chart above, the Ethereum Taker Sell Volume rose as high as 105 million ETH on Friday. Now, this places some context to the autumn in the ETH price seen on the day, as the spike in this metric is a signal of heavy promoting strain in the market earlier.
The price of ETH, which began the day above the $2,000 mark, soon dropped to around $1,920 as the weekend approached.
Ethereum Price Overview
As of this writing, the price of ETH stands at around $1,925, reflecting an over 5% decline in the past 24 hours. However, the past week’s motion was comparatively delicate, with the second-largest cryptocurrency dropping practically 2% of its worth in the past seven days.
The promoting strain witnessed by the Ethereum price over the past day will not be new, as it has been the case over the past few weeks. This development could be seen in the current efficiency of ETH exchange-traded funds (ETFs).
According to current market data, the US-based Ethereum ETFs have seen roughly 563,600 ETH (price practically $1.13 billion) withdrawn by buyers over the past 5 weeks. This important ETF outflow highlights the shift in investor sentiment and demand since the last week of January.
Market sentiment and demand need to shift optimistically for the ETH price to witness a bullish reversal soon.
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