Ethereum has been one of the best-performing cryptocurrencies on the market over the past week, with its price rising to $3,400 mid-week. Interestingly, the “King of Altcoins” is currently barely holding onto the psychological price level of $3,000.
On Friday, December 12th, the crypto market felt a wave of bearish pressure, with most large assets witnessing significant price corrections on that day. According to the latest on-chain data, the Ethereum market appears to be under significant selling pressure.
Ethereum taker trading volume spikes significantly
In a new post on the X Platform, cryptocurrency analyst Martun revealed that the Ethereum price has fallen victim to intense selling pressure over the past day. This observation is based on the Taker Sell Volume indicator, which saw a significant increase on Friday.
This on-chain metric estimates the total volume of sell orders executed by takers on perpetual swaps for a particular cryptocurrency (Ethereum in this case). In cryptocurrency trading, a taker is a market participant who executes an existing order on an exchange’s order book.
Source: @JA_Maartun on X
Martin highlighted that taker-selling volumes on all centralized exchanges showed a significant increase on Friday. According to data from CryptoQuant, the indicator rose to 124.2 million ETH on the day.
According to Maartunn, this significant spike in Ethereum taker sales volume is a clear sign of active sales in the market. This level of selling activity puts bearish pressure on Ethereum price and explains the latest correction towards $3,000.
60,000 ETH flows into centralized exchange
Another on-chain signal that supports the theory of increased sales in the Ethereum market is the exchange’s inflow indicators. According to data shared by Ali Martinez, a large amount of ETH tokens have flowed into centralized exchanges in the past day.
According to Santiment data, 60,000 ETH tokens worth around $200 million entered the exchange on Friday. As expected, this inflow activity caused a surge in the supply of Ethereum on exchanges and the public market.
This increase in exchange inflows will only put downward pressure on the Ethereum price as there is not adequate demand to compensate for this increase in supply. As of this writing, ETH is worth approximately $3,080, reflecting a decline of over 4% in the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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