Ethereum Shows Signs of Recovery as Taker Buy Ratio Reaches High

Ethereum (ETH) has rebounded slightly, trading up 1% at $1,842. The taker buy-sell ratio has hit a 30-day peak of 1.08, signalling bullish market pressure. Additionally, the RSI is trending upwards at 58.39, indicating potential for further price increases. ETH is above its key 20-day moving average, which supports a bullish outlook unless buying momentum fades, risking a drop to $1,385.

Over the past day, Ethereum (ETH) has managed to break free from the general market’s declining trend, achieving slight gains of around 1% to trade at $1,842. This uptick comes on the heels of a significant increase in the taker buy-sell ratio, which has reached its highest point in 30 days— a clear indication that bulls are regaining their strength in the ETH futures market.

CryptoQuant’s latest analysis shows the taker-buy-sell ratio sits at 1.08, the highest since early April. This metric, which compares the volume of buys to sells in ETH’s futures market, indicates a bullish environment. When the ratio exceeds 1, it suggests more traders are actively purchasing ETH contracts than selling them. Conversely, a ratio below 1 indicates increased selling pressure. The current reading at 1.08 clearly signifies a buyer-dominated landscape, highlighting trader confidence in continued price appreciation.

Adding to this optimism is Ethereum’s Relative Strength Index (RSI), which is also on an upward trajectory, now at 58.39 and rising. The RSI is a key indicator for assessing whether an asset is in overbought or oversold territory; values above 70 indicate overbought conditions, while below 30 suggest oversold conditions. The current RSI reading bolsters the bullish sentiment surrounding ETH, indicating it could be on the verge of further price growth.

Currently, ETH’s price sits comfortably above its 20-day exponential moving average (EMA), which stands as vital dynamic support at $1,770. The 20-day EMA gives more emphasis to recent price action, thus when an asset trades above this level, it generally points toward short-term bullish momentum. This suggests that if buying pressure continues, ETH might head northward towards $2,027.

However, should buying enthusiasm begin to fade, there’s potential for the asset to relinquish recent gains. A dip below the 20-day EMA could send ETH tumbling toward a lower support level around $1,385. Traders are watching closely to see how this buying pressure unfolds in the upcoming sessions.