Ethereum was one of the best-performing cryptocurrencies on the market last week, with its price surging to $3,400 by mid-week. Interestingly, the “king of altcoins” is now nowhere near the psychological $3,000 price level.
On Friday, December 12th, cryptocurrency markets felt bearish pressure, with most large assets seeing significant price corrections on the day. According to the latest on-chain data, the Ethereum market appears to be under severe selling pressure.
There has been a noticeable surge in Ethereum Taker volume.
Crypto analyst Maartunn said in a new post on the This observation is based on the Taker Sell Volume indicator, which showed a significant increase on Friday.
This on-chain indicator estimates the total volume of sell orders filled by takers on perpetual swaps for a specific cryptocurrency (in this case Ethereum). In cryptocurrency trading, a taker is a market participant who fills existing orders on an exchange's order book.
Source: @JA_Maartun on X
Maartunn highlighted a notable increase in taker selling volume across all centralized exchanges on Friday. According to data from CryptoQuant, the metric rose to 124.2 million ETH on the day.
According to Maartunn, this sharp rise in Ethereum taker selling volume is a clear sign of aggressive selling in the market. This level of selling activity has put bearish pressure on the price of Ethereum, which recently corrected towards $3,000.
60,000 ETH flows into the centralized exchange.
Another on-chain signal that supports the theory of increased sales in the Ethereum market is the exchange inflow indicator. According to data shared by Ali Martinez, a significant amount of ETH tokens have flowed into central exchanges in the past day.
According to Santiment data, 60,000 ETH tokens worth about $200 million entered the exchange on Friday. As expected, this inflow activity led to a surge in Ethereum supply on exchanges and open markets.
This increase in exchange inflows will only put downward pressure on the price of Ethereum, as there is not adequate demand to support the increasing supply. As of this writing, the value of ETH is around $3,080, down more than 4% in the last 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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