- Ethereum’s Latest Bullish Divergence
*Ethereum’s market shows signs of recovery as the taker buy-sell ratio indicates a bullish divergence, hinting at the end of a bearish trend.**
Ethereum’s (ETH) market at press time projected a major bullish divergence, indicated by the taker buy-sell ratio aligning against the price trend. Such a divergence often precedes a market recovery on the charts.
For example, in September 2023, despite the price dropping to near $1,500, the taker buy-sell ratio began to rise, indicating a buildup in buying pressure, which led to ETH recovering towards the $2,000-level.
Similarly, between November 2024 and January 2025, Ethereum’s price dropped to approximately $2,700. However, the taker buy-sell ratio displayed an uptrend, suggesting ongoing buying interest despite the price decline.
Historically, such patterns signal the end of bearish phases and the initiation of new bullish trends.
The current scenario hints that, despite the price being around $2,800, an uptrend could be on the horizon, aligning with past patterns where rising buy activity correlated with price recoveries.
Whales vs. Smart DEX Traders
Recent activities across the Ethereum ecosystem showcased a divide between large-scale buyers and active traders on decentralized exchanges amidst rising prices. This occurred before a significant decline due to the Bybit hack, which saw $1.4 billion in ETH lost.
Notably, whale accounts increased their holdings with an accumulation of an additional 140,000 ETH, signaling a bullish sentiment and possibly a long-term hold. This accumulation corresponded with an uptrend in ETH’s price, indicating strong confidence among major holders.
Conversely, the Cumulative Volume Delta (CVD) suggested that savvy DEX traders were increasingly taking profits or closing positions, which may hint at a shift in sentiment or risk aversion at the current price levels.
This selling activity could induce short-term price volatility or pressure as traders secure profits, contrasting with whales’ accumulation behavior. This complex interplay may lead to differing impacts on Ethereum’s trajectory in the short and long term.
Ethereum’s Log Curves
At the time of writing, Ethereum was trading in the oversold zone, which historically signals a potential reversal. ETH’s price appeared to be trading below this critical threshold within the log curve zones, increasing the likelihood of a price bounce.
Historically, such positioning has preceded significant rebounds, similar to events in mid-2017 and late 2020 when ETH transitioned from the oversold region to higher zones, indicative of robust buying interest at perceived value levels.
While oversold conditions typically foresee recoveries, external market shocks or broader bearish sentiment could override this potential, influencing ETH to drop further before any substantial recovery.
The existing oversold status could trigger a bullish reversal or extend a longer downtrend.
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