Ethereum drops 18% in a month: Will It fall below $3K?

Ethereum’s selling pressure was dominating on Binance
ETH has declined over the past month by 18.61%.

Since hitting a recent high of $3746 a week ago, Ethereum [ETH] has experienced strong downward pressure.

Over this period, ETH declined to a local low of $3,157. Although the altcoin has made moderate gains, it’s still declining.

At the time of writing, Ethereum was trading at $3,196, marking a 2.17% decline on daily charts. ETH has also dropped by 12.67% on weekly charts and 18.61% on monthly charts.

This decline across ETH charts is largely attributed to increased selling pressure, according to CryptoQuant.

Ethereum’s selling pressure dominates

As per CryptoQuant analysis, ETH is experiencing strong selling pressure on Binance. As such, since November 2024, Ethereum has seen considerable selling pressure on the exchange.

Source: CryptoQuant

The rising dominant selling pressure on Binance is evidenced by ETH’s Taker Buy/Sell Ratio. This metric has remained negative since November 2024, indicating a higher volume of sell orders compared to buy orders.

During this period, the Taker Buy/Sell Ratio has dropped to levels not seen since August 2023, reflecting the prevailing bearish sentiment.

While buyers attempted to take control in December, sellers quickly regained the upper hand, reinforcing the downward momentum.

The sustained selling pressure over the past months underscores a market that is both bearish and cautious.

On the flip side, a rising selling ratio presents a potential buying opportunity for long-term holders.