Amid Rising ETF Demand, Ethereum Battles Retail Bearishness

After testing the crucial $4,000 price barrier, Ethereum (ETH) continues to decline. This downturn has led Binance investors to become negative.

Darkfost of CryptoQuant found that Binance's Ethereum taker buy-sell ratio went “sharply negative” around $4,000. This means most exchange dealers are selling.

Ethereum Tug of War

Darkfost reports that Binance has been negative since November, as Ethereum approaches this important barrier level.

The expert said that although this adverse emotion might foreshadow a reversal, Ethereum's price movement has withstood significant bearish sentiment due to other causes.

Institutional interest in Ethereum Exchange-Traded Funds (ETFs) has increased, supporting Ethereum's price movement.

Institutional investors are increasingly influencing price fluctuations as Ethereum ETF demand rises.

Consistent institutional interest in Ethereum-focused investment products may have mitigated Binance retail traders' selling pressure.

ETH Market Forecast

Ethereum saw a major price correction, falling to $3,616 today. The asset is presently trading at $3,621, down roughly 6% in the previous day.

As expected, this price performance has reduced the asset's market worth by nearly $40 billion, from $490 billion last Friday to $434 billion today.

In contrast to this price drop, Ethereum's daily trading volume has increased from $60 billion on December 6 to $72 billion today. Due to market conditions, ETH volume may be rising due to sell-offs.

Coinglass reports 526,828 dealers liquidated in the previous 24 hours, totaling $1.58 billion. About $234.72 million of these liquidations are ETH.

Long-term liquidations dominate at $208.83 million. Short traders lost $25.89 million in ETH liquidations.

Analysts believe Ethereum's price drop is “healthy” for the market.

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