The Ethereum price struggled to break out of the $2,500 – $2,700 range over the past week, mirroring the sluggish condition of the general market. On Friday, June 20, the altcoin succumbed to a fresh wave of bearish pressure, falling toward the $2,400 mark to close the week.
Unsurprisingly, this latest downturn appears to be forcing the hands of investors who have been banking on the $2,500 support level over the past few weeks. Here’s how the falling ETH price and the resulting sell-off could affect the altcoin’s future trajectory.
ETH Price At Risk As Taker Sellers Unload Their Tokens
In a recent post on the social media platform X, on-chain analyst Maartunn revealed that a set of Ethereum traders might be on the move again. This on-chain observation revolves around a jump in the Taker Sell Volume, a metric that estimates the total volume of sell orders filled by takers in perpetual swaps of a specific cryptocurrency (ETH, in this case).
To provide some context, a taker refers to a market participant who places an order matched with an existing order on the order book. With this definition, the Taker Sell Volume represents the total amount of a cryptocurrency offloaded or sold by these market participants within a specific period.
In the post on X, Maartunn highlighted in his post that sell pressure is mounting in the Ethereum market, as taker sellers are beginning to dominate the buyers on exchanges. According to data from CryptoQuant, the ETH Taker Sell Volume on all centralized exchanges surged to around $321.3 million within a minute on Friday.
Source: @JA_Maartun on X
Typically, significant spikes in the Taker Sell Volume have often been followed by a period of downward pressure on the price of Ethereum. If history is anything to go by, investors might expect the second-largest cryptocurrency to struggle over the next few days.
Ethereum Price Overview
As of this writing, the price of ETH sits just above the $2,410 level, reflecting an almost 5% decline in the past 24 hours. According to data from CoinGecko, the altcoin is down by nearly 6% over the last seven days.
The Ethereum price has been stuck in consolidation within the $2,500 – $2,800 range over the past few weeks. With the token’s price now beneath a major support in $2,500 and the rising bearish pressure, the odds of ETH embarking on a sustained rally look slimmer.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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