- In the grand theatre of cryptocurrency, Ethereum recently decided to take a little nap, and guess what? The retail investors didn’t even bother to bring popcorn.
- But fear not, dear reader! The persistent demand for ETH in May suggests that this price dip is about as permanent as a cat’s loyalty—fleeting at best.
Ethereum [ETH], that cheeky little digital currency, has seen its short-term bullish sentiment fade faster than a magician’s rabbit. Just recently, an ETH whale, probably feeling a bit peckish, deposited 10,195 tokens worth a staggering $25.67 million into the centralized exchange Kraken. Such moves usually scream, “I’m about to sell!” like a toddler in a candy store.
The recent correction from $2.8K was influenced by a rise in Taker Sell Volume, which sounds like a fancy way of saying, “People are selling stuff!” However, AMBCrypto’s analysis shows that buyers have been playing the long game, remaining dominant over longer periods. Who knew crypto could be so dramatic?
In a post on CryptoQuant Insights, our intrepid analyst Burrak Kesmeci noted that local tops have been accompanied by flurried trading activity. The most recent example was the high activity in March 2024, which was about as subtle as a marching band in a library.
In December, when ETH decided to flirt with the $4k mark again, retail activity had all the excitement of a damp sponge. The same goes for the recent recovery to $2.8k. This implies that retail activity was missing, suggesting Ethereum is still in its early bullish phase—like a caterpillar that hasn’t quite figured out it’s supposed to become a butterfly.
AMBCrypto found that some other metrics supported this idea, because who doesn’t love a good metric?
The selling pressure behind Ethereum has been minor
The spot volume bubble map marks heightened and decreased trading volume across all exchanges. Generally, rapidly increased trading volume and overheated signals in the market point toward a pullback, which is just a fancy way of saying, “Hold onto your hats!”
This occurred in December 2024, but a repeat of this was yet to occur. It’s like waiting for a sequel to a movie that was never that good in the first place.
The quick recovery of ETH from $1.7k to $2.8k since April was accompanied by reduced trading volume. Profit-taking activity has not rocketed higher, which is a positive development—like finding a five-pound note in your winter coat.
Although trading volume was low, it did not rule out a potential price pullback. It’s like saying just because it’s sunny now doesn’t mean it won’t rain later.
For further insight, the spot taker CVD metric, which tracks the cumulative difference between market buy and sell volume over three months, provides key evidence. In May, the metric remained green and rising, indicating that taker buy orders were dominant. This suggests that despite the cooling volume, buyers still controlled the market, making any Ethereum price retracement likely to be shallow rather than deep—like a kiddie pool.
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2025-05-27 08:41