Ethereum, Strongest Buy Signal Since 2022...Has It Finally Bottomed Out?

▲ Ethereum (ETH)

The strongest buying pressure since the 2022 bear market is flowing into Ethereum (ETH), indicating a reversal in market trends.

According to crypto media outlet NewsBTC on April 20 (local time), analyst Darkfost from on-chain analytics firm CryptoQuant stated that a clear buyer-dominant trend has recently emerged in Ethereum's derivatives market. This is considered the first sign that the strong seller-dominant structure, which had persisted for several months, has broken.

Darkfost explained that the market had been suppressed by continuous selling pressure. Indeed, net taker volume remained in negative territory for a long time. This was a trend where selling pressure intensified whenever Ethereum attempted to reach a high.

For instance, when Ethereum attempted to break above $4,000 at the end of 2024, net taker volume plummeted to minus $511 million. Subsequently, even when it approached its all-time high, strong selling pressure of around minus $568 million continued. This was a structure where selling volume poured out with every attempt to rise.

However, the recent trend has changed. Since March, buying pressure has begun to take market leadership. The latest data shows net taker volume at plus $102 million. This means that buy orders are overwhelming sell orders in the derivatives market.

This change is similar to the level seen during the 2022 bear market. At that time, Ethereum saw strong buying pressure form around $1,000, leading to a rebound. However, the analyst drew a line, stating that it is difficult to definitively conclude a trend reversal based solely on this signal.

The market is currently entering the initial phase of transitioning from a seller-centric structure to a buyer-centric structure. If this trend continues, the possibility of recovering upward momentum is raised, but further confirmation is needed, according to analysis.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*