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Ethereum (ETH) continues to experience a pullback in its price as it has recently Test the $4000 resistance levelwhich is a major psychological price tag for cryptocurrency. Amid this correction, bearish trends emerged among investors on Binance.
Modern analysis By CryptoQuant Analyst Darkfost highlights an important trend as Binance’s buy/sell ratio for Ethereum turned “sharply negative” at the $4,000 mark. This indicates that stock market traders have mostly adopted a selling stance.
Ethereum tug of war
According to Darkfost, the Bearish sentiment Binance Coin has been on Binance since the beginning of November, coinciding with Ethereum approaching this critical resistance level.
The analyst noted that while such bearish sentiment could typically indicate a potential reversal, Ethereum’s price action has challenged seeing a high bearish bias, driven by other influencing factors.
Notably, demand for exchange-traded funds (ETFs) has risen, showing growing institutional interest that continues to support Ethereum’s price movement.
The surge in demand for Ethereum ETFs indicates a shift in market attitude as interest from institutional players is growing Influencing price movements.
Institutional interest, evidenced by continued flows into Ethereum-focused investment products, appears to have played a pivotal role in offsetting the selling pressure observed among retail traders on Binance.
ETH market performance and forecast
So far, Ethereum has seen a major correction in its price as it fell to a low of $3,616 as of today. At the time of writing, the asset is currently trading at $3,621, down approximately 6% in the past day.
It is worth noting that this price performance has unsurprisingly led to a decline in the asset’s market value by more than $40 billion, falling from more than $490 billion last week on Friday to $434 billion today.
Interestingly, despite this price decline, Ethereum’s daily trading volume has seen an opposite trend as it has risen from less than $60 billion on December 6 to $72 billion now. Given the current market state, it is likely that an increase in ETH volume is coming From sales operations.
according to Data From Coinglass, in the past 24 hours, 526,828 traders were liquidated, bringing the total liquidation to $1.58 billion. Of this total liquidation, ETH represents approximately $234.72 million.
Long liquidations dominate access to $208.83 million. Short traders also experienced losses in their shares, recording $25.89 million worth of ETH liquidations.
Regardless of this, so do the analysts Still optimistic About Ethereum, suggesting that the current price decline is quite “healthy” for the ETH market.
$ Ethereum Still going strong in HTF!#Ethereum The weekly health patch will be left as a retest and pumped hard! https://t.co/o78x8eBucf pic.twitter.com/YSixFqjuLQ
—EᴛʜᴇʀNᴀꜱʏᴏɴᴀL
(@EtherNasyonaL) December 10, 2024
Featured image created with DALL-E, chart from TradingView
