An on-chain review of the Net Taker Volume metric shows that following Ethereum’s recent bull run, traders exited the market in large numbers, reaching the highest exit volume since the Terra-Luna crash. .
According to CryptoQuant analyst Maartunn, the Net Taker Volume metric tracks how active buyers and sellers are in a given crypto asset market.
The indicator calculates the difference between “Taker Buy Volume” and “Taker Sell Volume” and provides insight into the behavior of market participants using market orders.
Market participants using market orders are willing to buy or sell at any price, regardless of the costs involved. However, according to Maartunn, their first priority is to get out of trouble.
With ETH’s net taker volume at its most negative since May 2022, “Ethereum traders are exiting the market via market orders, which is driving prices down”.
Source: CryptoQuant
Regarding ways to hedge the looming downside risks, Martuun recommends:
“The strongest signal for this indicator is when the price is still relatively high, but the net taker volume is dark red. This is where Ethereum is now. Negative, it’s better to sell on dips than to buy on dips.”
The latest Glassnode alert shows that ETH is flowing out of exchanges, with the exchange’s ETH balance falling to a 4-year low of 18,946,696,667 ETH.
📉 #Ethereum $ ether Exchange balances just hit a 4-year low of 18,946,696,667 ETH
The previous 4-year low of 18,948,275,315 ETH was observed on February 11, 2023
View metrics:https://t.co/1dCpD2ey8E pic.twitter.com/45yugPfDec
– glassnode alerts (@glassnodealerts) February 12, 2023
Most of the ETH outflows from exchanges likely went to DeFi. This could explain the total value of ETH locked in the ETH 2.0 deposit contract just spiked to a new ATH.
📈 #Ethereum $ ether The total value of ETH 2.0 deposit contracts just hit an ATH of 15,792,103 ETH
View metrics:https://t.co/SzbMPqvhlb pic.twitter.com/Ydzv8JmVY5
– glassnode alerts (@glassnodealerts) February 12, 2023
This is important because it confirms that ETH holders are more confident about holding their funds in DeFi. Signs of a favorable change in long-term expectations.
Additionally, the ETH supply held by the top 1% of addresses has increased slightly over the past few days.
Meanwhile, in stark contrast to the downward trend since early February, the number of ETH addresses holding more than 1,000 ETH has increased slightly over the past three days.
Source: Glassnode
Purchasing power wanes, but upgrading Shanghai can do wonders
According to data from Santiment, new demand for altcoins weakened after ETH broke the $1,600 mark. Since then, the number of new addresses created on the network each day has dropped by 88%.
Source: Santiment
The market also lacks the necessary new liquidity as buyers in the market are exhausted and unable to initiate any further bull run. As a result, prices fell 6% last week.
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Additionally, ETH open interest fell 5% during this period, according to Coinglass. This indicates a lack of market demand or investor attention for the asset, which could lead to a drop in price.
Source: Coinglass
Even so, many investors remain optimistic about the outlook as the upcoming Shanghai upgrade in March will likely release long-held ETH.
According to data from CryptoQuant, ETH’s funding rate has remained positive and has remained so for the past month, suggesting investors are leaning toward bullish expectations.
Source: CryptoQuant
Ethereum price
ETH just ended the week with a sharp drop. So there is more uncertainty about the direction, but more indicators and indicators could provide much-needed clarity.
A few things to note about price action: The pullback has pushed the RSI towards the 50 mark, and the bears appear to have lost most of their steam at this level. In addition, MFIs are showing slowing cash outflows.
Source: TradingView
More importantly, ETH’s 50-day moving average recently crossed its 200-day moving average to form a golden cross. This is a bullish signal, so this could lead to bullish expectations for investors.
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board take
According to AMBCrypto
