This month, the price of Ethereum has declined by more than 24 percent over the course of the last thirty days, making it difficult for it to break through the $2,750 level. Recent data, on the other hand, suggests that the altcoin that is currently the largest in the world may be getting closer to the end of its current market slump. The validity of this viewpoint is substantiated by two essential on-chain measures that provide insightful information.
Leveraged Traders Key to Ethereum’s Potential Bull Run
The Taker Buy Sell Ratio, which monitors the equilibrium between buyers and sellers throughout all exchanges, has reportedly returned to a positive state. This change provides evidence of a cautious yet encouraging rebound in buyer momentum, which may indicate the beginning of an upsurge, albeit with restrained confidence.
On the other hand, Open Interest (OI), which is a measure of the overall amount of open positions, has been seeing a significant decrease ever since it hit its highest point in June 2024, when the price of Ethereum reached $3,800. Following a key macroeconomic event that occurred at the beginning of August, OI has subsequently decreased to $7 billion, which is a considerable decrease from its previous record high of almost $13 billion before the market correction.
According to the findings of the on-chain analytic platform, it will be necessary for aggressive traders to come back to the market in order to achieve a major upward price movement.
The data that is currently available suggests that buyers of Ether are progressively recovering strength. The question that remains to be answered is whether this is only a brief bounce or whether it is the start of a protracted bull movement.
A well-known market researcher has brought attention to an important change in the Ethereum market. He has pointed out that the Ether balance on exchanges has, for the very first time, dropped below 10%. As a result of this reduction, there is currently a significantly lower quantity of Ethereum accessible through trading platforms in comparison to Bitcoin.
This change in investor behavior, in which more holders are taking their assets off exchanges, shows that there is a rising desire to keep onto Ethereum for the long run. In his most recent post on X, the investor mentioned that the decreased supply of Ether on exchanges might result in a significant price increase, which would indicate that the market may be developing an upward momentum. This is because the demand for Ether will certainly increase.
Personal Note From MEXC Team
Check out our MEXC trading page and find out what we have to offer! There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading! Learn about interoperability now!
Join MEXC and Start Trading Today!
