Ethereum News Today: Ethereum faces extreme sell pressure as ETH net taker volume hits -$418.8M

Ethereum’s native token, Ether (ETH), is under intense selling pressure as the market signals potential signs of a local top. According to CryptoQuant data, ETH’s Net Taker Volume plummeted to -$418.8 million as of Tuesday, marking the second-highest daily sell imbalance ever recorded [1]. This figure reflects the imbalance between market orders to buy and sell, with traders offloading 115,400 more ETH than they bought [1]. The sharp outflow suggests a surge in panic selling or heavy profit-taking amid growing uncertainty in the market.

The sell-off coincides with ETH testing a major resistance zone between $3,600 and $4,000, a price range that has historically acted as a ceiling since 2021 [1]. This situation mirrors a similar setup in December 2024, when the Net Taker Volume also turned sharply negative while ETH was near the same resistance level [1]. Following that event, the price collapsed by 66%, falling toward its 50-week and 200-week exponential moving averages (EMAs), currently at $2,736 and $2,333 respectively [1].

Analysts note that the convergence of bearish signals — including a plunging Net Taker Volume and a cooling relative strength index (RSI) — increases the likelihood of a similar correction [1]. If ETH fails to break above the $4,000 level, it could retrace toward these key EMAs by September or October, marking a potential 25%–35% decline from current prices [1].

CryptoQuant analyst Maartunn highlighted that such extreme sell-side imbalances have historically signaled local tops, casting doubt on the sustainability of Ethereum’s recent bullish momentum [1]. This raises questions about whether the current rally can hold or if the market is preparing for another significant pullback.

The sell pressure also comes amid broader Ethereum market dynamics, including recent movements in large institutional investments. While no direct correlation has been drawn between the ETF exodus and ETH’s price action, the broader sentiment remains cautious [1].

As with all crypto assets, the price of ETH is subject to significant volatility and is influenced by a variety of factors, including macroeconomic conditions, regulatory developments, and market sentiment. This article does not offer investment advice; readers are encouraged to conduct their own research and consider their risk tolerance before making any investment decisions [1].

Source: [1] Ethereum top is in? ETH sell-pressure hits $419M, second-highest level ever (https://coinmarketcap.com/community/articles/689367ff1d74da171fb86ad1/)