maartunn
Traders are selling #Ethereum on the most aggressive since May '22 đŹ
For this conclusion, I used the metric Net Taker Volume. What is Net Taker Volume? This is a metric I created using CryptoQuant API, which shows the aggressiveness of market sellers/buyers. To visualize this aggressiveness I calculated the difference between the metric 'Taker Buy Volume' and 'Taker Sell Volume'. Market participants who use a market order are willing to buy or sell at any price. They don't care about getting a bad price or paying more fees. They just want to get out of their position. An important nuance is that I have excluded liquidations because that are positions which are forced to close. What does it mean for the current situation? The metric has the deepest negative value since May '22. Traders on Ethereum are escaping the market through market orders, which is pushing the price down. The strongest signal of the indicator is when prices are still relatively high, but Net Taker Volume is deeply red. And that is where Ethereum is currently. This doesn't mean that Ethereum can't bounce in the short term but as long as Net Taker Volume shows negative values, it's better to sell the rip other than buy the dip. Note: I have also included a high-timeframe chart. This can be used to judge the historical performance of this metric.