Selling Pressure Eases, Buyer Volume Shows Upward Trend
CryptoQuant analyst CoinCare has indicated that selling pressure on Ethereum (ETH) has eased, suggesting an upward trend is imminent. The analyst believes that ETH could experience an upward move towards new all-time highs within approximately one month.
At this juncture, the analyst observed that Ethereum's net buyer volume had reached its lowest point and is now demonstrating an upward trajectory. Net Buyer Volume is an on-chain indicator designed to reflect the buying and selling pressure within the market. Generally, a positive Net Buyer Volume suggests that buying pressure exceeds selling pressure, while a negative volume implies the opposite.
The analyst further noted that while selling pressure persists, the period of aggressive selling has concluded, with selling pressure having peaked in September.
“Ethereum selling pressure peaked last September, and the market steadily absorbed that selling pressure for about three months.”
Historical Precedents and Potential Catalysts
According to the analyst, if the current upward trend in net buyer volume continues, it is estimated to turn positive in about a month. This shift could potentially trigger a significant rise in ETH's price.
Should Net Buyer Volume become positive within the next month, the Ethereum price could see an upward movement towards its All-Time High (ATH) level. The analyst pointed out that a similar pattern occurred earlier this year. Net purchase volume was at a low level in January, gradually increased, and reached a positive level around April.
Subsequently, the price of ETH experienced a substantial rise in April and May of this year.
“Historically, Net Purchase Volume turning positive has coincided with the beginning of Ethereum's strongest bullish periods.”
“If Net Purchase Volume turns positive at this point, it could very likely be a catalyst for Ethereum to lead an all-time high rally.”