Ethereum's (ETH) price recently faced a significant pullback as it challenged the $4,000 resistance—an important psychological benchmark for traders. This price correction coincides with the emergence of bearish sentiments among Binance investors. CryptoQuant analyst Darkfost revealed that Binance's taker buy-sell ratio for Ethereum has shifted "sharply negative" at this price point, indicating a predominance of selling over recent weeks.
Despite persistent bearish tones on Binance since November, evident when Ethereum neared the $4,000 resistance, Ethereum's price has weathered the trend, bolstered by other critical factors. The analyst suggests that while bearish indicators often signal potential reversals, Ethereum has remained resilient.
Institutional interest is playing a crucial role in influencing Ethereum's price behavior. A marked increase in demand for Ethereum Exchange-Traded Funds (ETFs) reflects this trend, indicating a growing influence of institutional investors in the market. Institutional contributions significantly counterbalance selling pressure from retail traders on exchanges like Binance.
So far, Ethereum has experienced a notable price correction, reaching as low as $3,616. Currently, ETH trades at $3,621, reflecting a nearly 6% dip within the last 24 hours. This decline has reduced Ethereum's market capitalization significantly, dropping from over $490 billion last week to $434 billion today.
However, Ethereum's daily trading volume has risen contrarily, climbing from below $60 billion on December 6 to $72 billion, likely driven by sell-offs. Coinglass data indicates 526,828 traders have been liquidated within 24 hours, totaling $1.58 billion in losses, with Ethereum accounting for $234.72 million. Long liquidations predominate, hitting $208.83 million, while short traders faced $25.89 million in losses.
Yet, optimism persists among analysts who view Ethereum's current price adjustment as a "healthy" market development. "Ethereum's market remains strong in the higher time frames," noted one analyst, suggesting that this correction could soon turn into a robust upward movement.
This analysis leaves Ethereum traders and observers torn between immediate bearish pressures and the potentially stabilizing force of growing institutional investment. The market now waits to see which side will prevail.