This month, Ethereum's price has seen a significant rise, attracting renewed interest among traders and analysts in the crypto market.
Market Sell Pressure
The taker-sell ratio, which measures aggressive sell orders against buys, reached 0.52 on July 28. The last time this ratio hit these levels in April, ETH dropped nearly 11%. An increase in the ratio indicates more traders are rushing to sell their assets at market price, signaling fear or attempts to lock in profits.
Exchange Inflows and Consequences
Data on ETH inflows to exchanges show a rise to an average of 43 ETH (per key addresses) over seven days, which may indicate holders preparing to sell. Historically, such increases have been tied to 40-45% corrections in earlier cycles. While not guaranteeing a sharp drop, elevated inflows typically signal local tops or sharp pullbacks before subsequent rallies.
Ethereum's Outlook Towards $4,500
Despite short-term warning signs, the broader picture in the market remains bullish. Ethereum has been steadily growing since June, and its structure on the daily chart shows higher highs and higher lows. The key resistance zone is between $3,900 and $4,200. A clean breakout above this area could lead to a move towards $4,500, in line with Fibonacci targets and market momentum.
In conclusion, the current price state of Ethereum suggests a potential short-term correction, but continued growth remains likely. It is crucial to monitor selling metrics, exchange inflows, and support levels in the coming days.
