Ethereum Bulls Eye Recovery as Taker Buying Surges

Ethereum's price has been hovering below the $2,700 mark for several days, with bulls struggling to gain momentum and push above $2,800. Selling pressure has kept Ethereum (ETH) below key resistance levels, and the recent hack of Bybit, one of the top crypto exchanges, leading to a $1.4 billion loss in ETH, triggered panic selling and drove the price into lower demand levels.

However, data from CryptoQuant suggests a potential turnaround. Their latest analysis reveals a bullish divergence in Ethereum taker buying—a key indicator that buying pressure is increasing despite price declines. This type of divergence has historically signaled the start of recovery rallies, as traders and institutions accumulate ETH at lower levels in anticipation of a bounce.

Ethereum has been in a steady decline since late December, with no clear signs of recovery. Bulls have failed to reclaim key resistance levels, while bears continue to control the market, pushing the price lower with each failed breakout attempt. Despite this prolonged bearish trend, on-chain data suggests a potential shift. CryptoQuant shared key data on X, revealing an interesting pattern that has historically marked the end of bearish trends and the beginning of bullish phases.

According to their analysis, when a bullish divergence occurs—where the price of Ethereum is falling, but taker buying volume is rising—past trends suggest that selling pressure is weakening. This typically signals that buying momentum is building as traders begin accumulating ETH in anticipation of a trend reversal.

Today, Ethereum is showing a taker buying bullish divergence, similar to previous instances that led to bullish breakouts. While the market remains uncertain, this could be an early indication of a new bullish phase. If Ethereum holds above current demand levels and reclaims $2,800, a strong recovery rally could follow.

Ethereum is currently trading at $2,660 after an underwhelming Friday, where the price dropped 7% following the Bybit hack news and overall market uncertainty. Bulls are struggling to reclaim key resistance levels, and the lack of strong demand at current levels raises concerns about Ethereum's ability to recover. For Ethereum to confirm a bullish breakout, it must reclaim the $2,800 mark and push above $3,000 to gain momentum for a sustained rally. However