Ethereum sees intense daily shorting activity, with sellers outpacing buyers by $350 million in volume.
The consistent selling pressure makes it hard for Ethereum to break key levels and regain bullish momentum.
Market watchers observe that seller dominance is impacting both Ethereum's price trends and broader trading sentiment.
Ethereum is experiencing shorting activity, with daily taker-seller volumes surpassing buyers by $350 million. Analyst Maartunn reports that this bearish dominance is evident in Ethereum’s net taker volume trends, which highlight consistent negative activity over the past months.
Source: Maartunn
This pattern is pushing Ethereum into a challenging position in the market, with increasing pressure on its price movements. The latest data from CryptoQuant reveals that the token’s net taker volume continues to stay largely negative, showing a persistent seller-led market.
These red zones on the chart indicate consistent dominance by sellers over buyers, which is creating downward pressure. Besides, Ethereum’s price appears to reflect these trends, struggling to gain momentum while facing consistent resistance levels.
Consistent Selling Drags Ethereum Down
The chart also shows a prolonged period of negative net taker volume, especially since mid-2021. During these times, seller activity has far outweighed buyers, with net volumes frequently exceeding -$400 million. While there have been brief spikes of buying activity during bullish phases, such as in 2021, they have remained rare and short-lived.
Ethereum’s price peaked at over $4,000 during the 2021 bull market, but selling dominance since then has made recovery difficult. Net taker volumes in red continue to grow in magnitude, indicating persistent bearish sentiment among traders. Consequently, Ethereum’s price continues to face challenges, with little room for upward movement due to the overwhelming selling activity.
Will Ethereum Reverse This Trend?
The continued shorting activity raises key questions about Ethereum’s ability to recover in the short term. Analyst Maartunn highlighted that taker sellers are driving the market, which shows bearish sentiment among traders betting against Ethereum. This aggressive selling is not only impacting Ethereum’s price but also the overall market sentiment surrounding the cryptocurrency.
The selling dominance has made it harder for Ethereum to break through resistance levels and regain its previous highs. However, historical trends suggest extreme selling activity has sometimes preceded stabilization periods, making on-chain metrics critical for traders to watch.
The post Ethereum Hits $350M Daily Shorting as Sellers Lead the Market appeared first on Crypto News Land.
