Mike Smith
Jan 7
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Ethereum (ETH) posted significant gains last week, but prospects for reaching $4,000 are less certain due to increasing selling pressure in the futures market.
According to CryptoQuant, the volume of market orders to sell ETH continues to grow. The Taker Buy Sell Ratio indicator has remained below one since the beginning of January and is currently at 0.84. This indicator reflects the ratio of purchase and sale volumes executed by market orders. A value below 1 indicates sellers' dominance, which increases the likelihood of a price decline.
This imbalance in market sentiment puts pressure on the asset, which may lead to the loss of recent gains. For example, the current dynamics of ETH indicate a possible price correction.
In addition, the negative metric of Weighted Sentiment indicates investor sentiment. Since December 17, it has remained in the negative zone, and the latest value is -0.67. This indicator takes into account the polarity of asset mentions and their frequency on social networks. A negative value confirms bearish sentiment, which also restrains the price growth.
The current price of Ethereum is slightly above the support level of $3,332. However, increased selling on the futures market may provoke a breakout of this zone, which will open the way to a decline to $2,509. This scenario significantly removes ETH from the ambitious target of $4,000.
At the same time, there is an alternative option. If sales volumes begin to decline and buyers become active, ETH may resume growth. A stable upward trend can lead to a breakout of the $4,000 level and, possibly, bring the price closer to the historical maximum of $4,783.
