Ethereum has surged 2.75% over the past day as the crypto market continues to experience an overall price recovery heading into 2025. Notably, data from Ethereum investor activity indicates that a sustained uptrend is expected in the short term, with a corresponding increase in bullish sentiment.
Ethereum taker buy-sell ratio approaches 1, bullish trend resumes
in quicktake post At CryptoQuant, market analyst ShayanBTC hypothesized that the Ethereum market could experience further price increases based on the taker-buy-sell ratio – An important trading indicator in the futures market, used to measure the balance of active buying and selling.
The taker-buy-sell ratio is used to measure market sentiment by indicating whether buyers or sellers are more aggressive in placing market orders. A ratio greater than 1 indicates buyer dominance; a ratio less than 1 indicates strong selling pressure.
This ratio recorded a significant increase in buy orders in the market as Ethereum recovered above $3,000. This development suggests that Ethereum traders are increasing their expectations for near-term price increases.
If Ethereum bulls can maintain the current uptrend, the altcoin is expected to move back towards the next key resistance level at $4,000. However, Shayan BTC points out that for a bullish trend to be confirmed, the buyer-buy-sell ratio needs to exceed 1, indicating that buyers are dominating the market.
Altcoin valuation expected to reach $2 trillion in altseason
In other news, crypto analyst Michael van de Poppe said: said The altcoin market has recently undergone a correction reaching an important support level. These digital coins are currently on an upward trend as alt-season prepares to take full effect. Given the heightened expectations surrounding the current bull cycle, Van de Poppe predicts that altcoin market capitalization could reach $2 trillion in valuation during altseason.
Ethereum, the largest altcoin by market capitalization, is likely to play a major role in igniting and leading the bullish momentum in the altcoin market during this period. Ethereum holds a 29.7% dominance in the altcoin market, so if Van de Poppe's predictions come true, the token's market cap could reach around $594 billion during altseason. .
For context, an altseason is a period in which altcoins (i.e., other cryptocurrencies other than Bitcoin) experience significant price increases and outperform Bitcoin in terms of growth rate.
At the time of writing, Ethereum is trading at $3,652, reflecting a 1.37% price increase over the past 24 hours. Meanwhile, the daily trading volume of altcoins decreased by 25.76% and its value was $16.29 billion.
Featured images are from FXStreet, charts are from Tradingview
