Ether taker volume hits 3-year high: Will ETH avoid a 19% price decline?

A strong buy signal not seen since 2022 just flashed on Ether, but the altcoin needs to hold above a key price level to avoid invalidating the pattern.

A key Ether (ETH) onchain indicator has climbed to its highest level in over three years, a level last seen when ETH bottomed during the 2022 bear market cycle.

The signal supports the case for an early bottoming phase, despite the weak spot demand and muted price action. Data suggests that ETH may stabilize near the local floor around $2,000, but a sweep of lower price levels remains possible in the coming weeks.

The 30-day average of positive Ether net taker volume climbed to $142 million on March 17, reaching levels last seen on July 18, 2022. The net taker volume measures the difference between aggressive buyers and sellers in derivatives markets. 

A positive reading signals that market orders lean toward buyers. The recent surge aligns with prior spikes seen in mid-2022 during a correction phase.

These expansions have appeared during transitional periods where traders reposition and add exposure while the price stabilizes near a market bottom, as observed in July 2022 and August 2020.

The Ethereum Coinbase premium index has also been positive since Feb. 24, and the elevated premium levels indicate growing spot demand from US-based traders.

However, crypto analyst Pelin Ay noted that despite the drop in supply-side pressure, the price response has remained relatively muted, possibly due to a lack of dominant buy demand. The analyst said, 

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Ether’s short-term support aligns with the 100- and 200-period exponential moving averages (EMAs), but the price is compressing near an ascending trendline, with a potential breakdown placing focus on the lower liquidity zones.

The internal liquidity sits between $2,100 and $2,000 and a more pronounced cluster has formed near $1,905. 

A larger liquidation cluster sits at $1,976, where over $3 billion in long positions are open. A move into this zone may trigger forced liquidations and create a short-term imbalance.

If buyers step in, this area may also act as a demand zone and support a price rebound above $2,000.

Crypto trader EliZ outlined a clear threshold at $2,000 on the daily timeframe. Holding above this level keeps the medium-term trend intact. A break below shifts the positioning toward aggressive short exposure, with the lower targets in focus.

Related: Crypto Fear and Greed rebounds off extreme lows as traders re-enter

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Source: CoinTelegraph