Ether’s price has had trouble pushing past above $2,750 this month. Within the past 30 days alone, Ether has shed over 24% of its value.
However, a recent analysis suggests that the world’s largest altcoin may be in the late stages of its current market correction. This narrative is backed by two key on-chain metrics offering insights.
Buyers Slowly Regain Control in ETH Market
According to CryptoQuant, the Taker Buy Sell Ratio, which measures the ratio of buyers to sellers across all exchanges, has turned positive again, signaling a subtle but promising resurgence in buyer strength. As such, this uptick could indicate the beginning of a recovery, though it remains cautious.
Meanwhile, Open Interest (OI), representing the total of all open positions, has seen a significant drop from its peak in June 2024, when Ethereum’s price reached $3,800. The OI hit a record high of over $13 billion before the correction, dropping to $7 billion following a significant macroeconomic event in early August.
For a meaningful upward price movement, leveraged traders will need to re-enter the market as per the on-chain analytic platform’s findings.
“Current data shows that buyers in Ether are gradually regaining strength. However, time will tell whether this is a temporary rebound or the start of a strong rally led by the bulls.”
Drop in ETH Exchange Balances
Popular market researcher Leon Waidmann has observed a significant milestone in the Ethereum market: for the first time ever, the Ether balance on exchanges has fallen below 10%. This decline means there is now considerably less ETH available on trading platforms than BTC.
This reduction in exchange-held Ethereum indicates a shift in investor behavior, with more holders moving their assets off trading platforms.
As demand for ETH inevitably rises, the reduced supply on exchanges could lead to a sharp increase in its price, signaling potential upward momentum in the market, Waidmann said in his latest update on X.
The post Ethereum Correction May Be Winding Down: 2 Key Metrics Indicate a Shift appeared first on CryptoPotato.
from CryptoPotato https://ift.tt/dtEIcY3