- Ethereum’s selling pressure was dominating on Binance
- ETH has declined over the past month by 18.61%.
Since hitting a recent high of $3746 a week ago, Ethereum [ETH] has experienced strong downward pressure.
Over this period, ETH declined to a local low of $3,157. Although the altcoin has made moderate gains, it’s still declining.
At the time of writing, Ethereum was trading at $3,196, marking a 2.17% decline on daily charts. ETH has also dropped by 12.67% on weekly charts and 18.61% on monthly charts.
This decline across ETH charts is largely attributed to increased selling pressure, according to CryptoQuant.
Ethereum’s selling pressure dominates
As per CryptoQuant analysis, ETH is experiencing strong selling pressure on Binance. As such, since November 2024, Ethereum has seen considerable selling pressure on the exchange.
Source: CryptoQuant
The rising dominant selling pressure on Binance is evidenced by ETH’s Taker Buy/Sell Ratio. This metric has remained negative since November 2024, indicating a higher volume of sell orders compared to buy orders.
During this period, the Taker Buy/Sell Ratio has dropped to levels not seen since August 2023, reflecting the prevailing bearish sentiment.
While buyers attempted to take control in December, sellers quickly regained the upper hand, reinforcing the downward momentum.
The sustained selling pressure over the past months underscores a market that is both bearish and cautious.
On the flip side, a rising selling ratio presents a potential buying opportunity for long-term holders.
Impact on ETH price charts?
As observed above, Ethereum is experiencing strong selling pressure, which has negatively affected the altcoin’s price movements.
Source: Tradingview
For starters, we can see higher selling pressure as ETH Chaikin Money Flow (CMF) has turned negative. With CMF sitting at -0.08, it implies that sellers are dominating the market.
This market behavior is confirmed by a declining Relative Strength Index (RSI) which has dropped to almost oversold territory to settle at 38. Such a dip implies sellers are in control of the market.
Source: IntoTheBlock
Looking further, Ethereum’s inflow into exchanges has spiked over the past week. This has surged from -50.77k to 103.77k, which indicates that there’s more ETH inflow onto exchanges than outflow.
Usually, higher inflow into exchanges precedes increased selling ppressure,as investors tend to sell when they make these transfers.
Source: CryptoQuant
Ethereum’s Estimated Leverage Ratio (ELR) has experienced a sustained increase over the past month. When ELR rises during a downtrend, it indicates a bearish sentiment, increasing the risk of a long squeeze.
If prices drop further, long positions could be liquidated, resulting in a long squeeze and further price declines.
Read Ethereum’s [ETH] Price Prediction 2025–2026
In conclusion, Ethereum is under strong selling pressure as bearish sentiments persist. If current market conditions continue, ETH could decline to $3,030 and potentially drop below $3,000 to find support around $2,810.
However, if the downtrend exhausts and a reversal emerges, the altcoin could reclaim $3,300.
