Ethereum has been one of the best-performing cryptocurrencies on the market over the past week, with its price surging mid-week to $3,400. Interestingly, the “king of altcoins” is now barely clinging to the psychological price level of $3,000.
On Friday, December 12, the crypto market felt a wave of bearish pressure as most large-cap assets saw significant price corrections on that day. According to the latest on-chain data, the Ethereum market appears to be under heavy selling pressure.
Ethereum Taker Volume Sees Noticeable Increase
In a new article on Platform This observation was based on the Taker Sell Volume metric, which saw a significant increase on Friday.
This on-chain metric estimates the total volume of sell orders executed by takers in perpetual trades of a particular cryptocurrency (Ethereum, in this case). In cryptocurrency trading, a taker refers to a market participant who executes an existing order in an exchange’s order book.
Source: @JA_Maartun on X
Maartunn highlighted that the sales volume of takers on all centralized exchanges saw a notable increase on Friday. Data from CryptoQuant shows that the metric reached 124.2 million ETH on that day.
According to Maartunn, this significant increase in Ethereum Taker sales volume is a clear sign of aggressive selling in the market. This level of selling activity put downward pressure on the Ethereum price, explaining the latest correction to $3,000.
60,000 ETH flows to centralized exchanges
Another on-chain signal that supports the theory of increased sales in the Ethereum market is the measurement of exchange inflows. According to data shared by Ali Martinez, significant amounts of ETH tokens have found their way onto centralized exchanges over the past day.
Data from Santiment shows that 60,000 ETH tokens, worth around $200 million, flooded into exchanges on Friday. As expected, this influx activity has led to an increase in the supply of Ethereum on exchanges and in the open market.
Without adequate demand to absorb this growing supply, this growing influx of currencies only puts downward pressure on the price of Ethereum. At the time of writing, ETH is valued at around $3,080, reflecting a decline of over 4% in the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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