Ethereum Bulls Could Seize Market Control, as ETH Aims at Higher Resistance Levels
The cryptocurrency market has witnessed a renewed surge in buying activity, sparking a relief rally among several prominent digital assets. Ethereum also experienced a sudden departure from its previous corrective path as prices swiftly rebounded from the $1,550 range surging to $1,635.
But there could be more to this bullish turnaround. According to the latest analysis by CryptoQuant, Ethereum bulls could be taking control of the market.
Ethereum Bulls Taking Control of the Market
CryptoQuant’s ‘Taker Buy Sell Ratio’ metric, coupled with a 30-day simple moving average, is a tool closely tracking Ethereum’s price dynamics. It serves as an indicator to assess whether buyers or sellers are displaying greater aggression in executing their orders. Positive values typically signal a bullish sentiment, while negative values are considered bearish indicators.
It is important to note that Ether has been on a downtrend in recent weeks. The world’s largest altcoin has encountered multiple rejections around the $2,000 resistance threshold. Notably, this metric has consistently dwelled in negative territory for the past several months, which is indicative of a continued bearish sentiment in the futures market toward the crypto asset.
Despite this, a noteworthy shift has occurred in this metric as it spiked abruptly, approaching the neutral 0 line. This surge hints at a potential transformation in market sentiment, suggesting a shift towards a more bullish outlook.
According to the crypto intelligence platform, should the metric persist in its upward trend and breach into positive territory, it may signal the advent of a new phase characterized by bullish price movements. In this case, Ether’s price could experience an upswing, potentially targeting higher resistance levels.
Ether has witnessed a 65% drop in value since its all-time high in 2021. Some holders of the token may have been experiencing heightened difficulty due to “capitulation signs” amid its six-month lows. Interestingly, capitulation events often precede a price rebound, a consensus held by many experts in market cycle theories.
It’s a common belief among market experts that capitulation events are often followed by a price rebound. Santiment’s latest analysis has termed this current situation a “historical anomaly” that could serve as a significant “capitulation signal,” potentially paving the way for a price recovery in the near future.
This notion aligns with the idea that Ethereum’s price might see an upturn soon, particularly as many holders may have had to realize losses, potentially marking the end of a market cycle.