Ethereum Sell-Pressure Hits $419M, Second-Highest Level Ever
Ethereum’s native token, Ether (ETH), may be signaling a local top as selling pressure approaches historic extremes.
Traders Sell 115,400 More ETH Than They Buy
As of Tuesday, ETH’s Net Taker Volume dropped to -$418.8 million, marking the second-largest daily sell imbalance ever. This means 115,400 more ETH were sold than bought via market orders, according to CryptoQuant data.
Net Taker Volume measures the difference between buying and selling executed through market orders. These “taker” trades prioritize execution speed over price, often indicating urgency or fear. When taker sell volume vastly outweighs taker buys, it often suggests capitulation or heavy profit-taking.
Such massive sell-side imbalances have historically marked local tops, casting doubt on the sustainability of Ethereum’s current rally.
Ether May Decline 25%-35% Next
The recent surge in ETH sell-side pressure coincides with the price retesting a significant distribution zone between $3,600 and $4,000. This zone has repeatedly acted as resistance since 2021.
Ethereum faced a similar setup in December 2024, when Net Taker Volume turned sharply negative near this resistance zone. What followed was a steep 66% decline, with the price collapsing toward its 50-week and 200-week exponential moving averages (EMAs).
Currently, the weekly relative strength index (RSI) is cooling from overbought levels, increasing the probability of ETH retreating toward its 50-week EMA at $2,736 and 200-week EMA at $2,333 by September or October.
A drop to these support levels would represent a 25%–35% decline from current prices.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Tags
- Ethereum
- Cryptocurrency
- Blockchain
- Market Analysis
- Technical Analysis
Author
Yashu Gola
Source Attribution
Originally published at Cointelegraph on Wed, 06 Aug 2025 14:25:00 GMT
Frequently Asked Questions (FAQ)
About Ethereum's Sell Pressure
Q: What does "sell-pressure" refer to in the context of Ethereum?
A: Sell-pressure, in this context, refers to the volume of selling activity for Ether (ETH) that is executed through market orders, as opposed to limit orders. High sell-pressure suggests that a significant number of traders are looking to sell their ETH quickly, potentially indicating fear or a desire to take profits.
Q: What is Net Taker Volume and why is it important?
A: Net Taker Volume measures the net difference between buying and selling executed through market orders. A negative Net Taker Volume, as seen with Ethereum in this article, indicates that more ETH was sold than bought via market orders. This metric is important because a strong negative imbalance can signal capitulation or heavy profit-taking, often preceding a price top.
Q: What are "taker" trades?
A: Taker trades are market orders that are executed immediately, prioritizing speed over price. Traders who use market orders are "takers" because they take liquidity from the order book. When selling volume from these takers significantly outweighs buying volume, it suggests an urgent need to sell, which can be a bearish indicator.
Q: What is a "local top" in cryptocurrency markets?
A: A "local top" refers to a price point where an asset's value reaches a temporary peak before beginning to decline. It signifies the end of a short-term upward trend. The article suggests that the high sell-pressure on ETH might indicate it has reached such a local top.
Q: What is a "distribution zone" in technical analysis?
A: A distribution zone is a price range where an asset has historically faced resistance. It's an area where selling pressure tends to overcome buying pressure, preventing the price from rising further. The article mentions ETH retesting a distribution zone between $3,600 and $4,000, which has acted as resistance since 2021.
Q: What are Exponential Moving Averages (EMAs)?
A: Exponential Moving Averages (EMAs) are a type of moving average that places a greater weight and significance on the most recent price data. They are used in technical analysis to identify trends and potential support or resistance levels. The article refers to ETH potentially retreating towards its 50-week and 200-week EMAs as key support levels.
Q: What is the Relative Strength Index (RSI)?
A: The Relative Strength Index (RSI) is a momentum oscillator used in technical analysis that measures the speed and change of price movements. It oscillates between 0 and 100 and is often used to identify overbought or oversold conditions. The article notes that ETH's weekly RSI is cooling from overbought levels, which could precede a price correction.
Crypto Market AI's Take
The significant sell-pressure on Ethereum, indicated by the substantial negative Net Taker Volume, suggests a potential shift in market sentiment. While past performance is not indicative of future results, such heavy selling at resistance levels often precedes corrections. For investors looking to navigate these market dynamics, understanding the interplay of technical indicators like EMAs and RSI is crucial. Our AI-driven tools at Crypto Market AI can help analyze these trends and provide insights into potential trading strategies. For those interested in managing risk during volatile periods, exploring our AI-powered trading bots can offer automated solutions to adapt to changing market conditions.
More to Read:
- What Drives the Prices of Cryptocurrency
- How to Read Cryptocurrency Charts: A Beginner to Advanced Guide
- Ethereum at 10: Top Corporate ETH Holders
