- CryptoQuant analyst Burak Kesmeci cites improving Taker Buy Sell Ratio and Open Interest as signs of recovery.
- Despite recent gains, market volatility remains with $111.52 million in trader liquidations over the last 24 hours.
Ethereum shows subtle signs of price stabilization. Trading at $2,661, it has experienced a modest decrease of 2.31% over the past day.
This recovery follows a recent low of $2,545, marking a small rebound in its otherwise downward trajectory. Despite this gain, Ethereum’s current price remains nearly 45% below its peak of $4,878 reached three years ago.
Investors and analysts are now evaluating whether this recovery suggests a longer-term upward trend or merely a brief correction in its price decline. Burak Kesmeci, an analyst from CryptoQuant, provided insights based on recent on-chain data, suggesting that Ethereum might be concluding its correction phase.
Kesmeci identifies two critical indicators hinting at a potential turnaround. The first is the Taker Buy Sell Ratio, which has recently shifted in favor of buyers, indicating increased buying activity over selling. This positive shift could herald the start of a market rally if it persists.
The second indicator is Open Interest (OI), which tracks the total unsettled trading positions in the market. Notably, when Ethereum hit $3,800 in June 2024, OI reached a new high of over $13 billion, which typically precedes a price correction.
Such a correction occurred following a drop in OI to $7 billion in early August, driven by a major economic event.
A resurgence in market activity, particularly by leveraged traders, is necessary for a notable increase in Ethereum’s price. Recent trading data by ETHNews, however, shows a mixed trading crypto market.
In the last 24 hours, liquidations impacted 43,521 traders, leading to $111.52 million in total liquidations, with $26.63 million directly related to Ethereum, primarily affecting long positions. This indicates persistent market volatility and the continued high risk associated with leveraged trading positions.
A surge in Ethereum withdrawals from trading platforms is another key metric, often indicating investor confidence. Over the last week, big amounts of Ethereum have been moved off exchanges, suggesting that many investors are transitioning their holdings to more secure storage.
This trend typically reduces the immediate trading supply of Ethereum, potentially driving up its price if demand remains constant.
The question remains whether these signs will translate into a substantial and sustained rally or if Ethereum will face further challenges in its recovery efforts.
“Current data shows that buyers in Ether are gradually regaining strength. However, time will tell whether this is a temporary rebound or the start of a strong rally led by the bulls.”
Kesmeci cautiously notes the gradual strengthening of buyer momentum but underscores that time will reveal whether this marks a temporary rebound or the onset of a lasting upward movement.
