Ethereum’s price has been struggling. It’s currently below $2,700, and attempts to break above $2,800 have failed. Selling pressure is strong, and buyers haven’t been able to gain much momentum.
The Bybit Hack and Market Sentiment
Things got worse on Friday with the Bybit hack, resulting in a massive $1.4 billion loss in ETH. This caused a panic sell-off, pushing the price even lower and creating more uncertainty.
A Bullish Signal?
But there’s a glimmer of hope. Data from CryptoQuant shows a bullish divergence in Ethereum’s taker buy/sell ratio. This means that even though the price is falling, the volume of buying is increasing. Historically, this has been a good sign of an upcoming price recovery. It suggests that traders are accumulating ETH at lower prices, anticipating a bounce.
What to Watch For
The next few days are critical. If Ethereum can reclaim the $2,700-$2,800 range, it could signal a strong recovery. However, further price drops are also possible. Traders are closely watching for key breakout levels to confirm a sustained rally.
Ethereum’s Recent Struggles
Ethereum has been on a downward trend since late December. Repeated attempts to break key resistance levels have failed, keeping the bears in control.
On-Chain Data Suggests a Turnaround
Despite the bearish trend, on-chain data paints a different picture. The bullish divergence in taker buying volume is a significant indicator. When this happens, it often signals the end of a bearish trend and the beginning of a bullish one.
Potential for a Bullish Breakout
This current bullish divergence in Ethereum’s taker buy volume is similar to previous instances that preceded bullish breakouts. While uncertainty remains, it could be an early sign of a bullish phase. Holding above current support levels and reclaiming $2,800 would be strong confirmation.
Current Market Conditions
Ethereum is currently trading around $2,660. The lack of strong buying pressure raises concerns about a sustained recovery. Reclaiming $2,800 and pushing above $3,000 would be needed to confirm a strong bullish breakout. However, the $2,600 level has acted as support recently. Holding above this level, combined with a move above $2,800, would increase the chances of a bullish reversal. Failure to hold above support levels could lead to further price drops.
