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Ethereum Price Decline: Rising Buy Volume Signals Potential Breakout Ahead

Ethereum (ETH) may be experiencing a downtrend in price, but the surge in buying volumes tells a different story. As market activity increases amid the price decline, it mirrors patterns seen before significant surges, such as the May 2024 spike. Could this be the calm before Ethereum’s next price surge?

Price Drops and Rising Buy Volume: A Sign of Accumulation?

Despite Ethereum’s 11% price drop from $3,750 in early January to $3,350, there’s a notable increase in taker buy volume. Taker buy volume tracks the number of buy orders executed at market price and, when compared to the 100-day simple moving average (SMA), has surged during this price decline. This suggests growing market activity, with investors possibly positioning themselves for a breakout.

Source: Cryptoquant

This trend mirrors Ethereum’s behavior during the May 2024 price correction, when a surge in taker buy volume preceded a 27% price rebound. As of now, taker buy volume is exceeding $4 billion, and the SMA continues to trend upwards, potentially signaling another accumulation phase similar to what was seen in May 2024.

Historical Patterns Point to Potential Price Surge

Ethereum’s price history reveals a recurring pattern: declines paired with rising buying volumes often lead to significant surges. In December 2024, despite a price drop to around $2,500, taker buy volume increased, signaling accumulation by investors anticipating a rebound. This resulted in a rally that saw ETH climb to $3,700 in early 2025.

The May 2024 price drop also saw increased buying activity, leading to a price surge. These historical patterns strongly suggest that rising buy volumes during price declines could be signaling an impending breakout for Ethereum.

Ethereum’s Short-Term Outlook

As of now, Ethereum’s price is consolidating around $3,228, above the crucial $3,000 support level. The Relative Strength Index (RSI) shows neutral momentum, indicating market indecision but leaving room for potential upside. The On-Balance Volume (OBV) remains steady, pointing to continued accumulation.

Also Read: Ethereum on Edge: Can ETH Surge Past $4,000 Following Bitcoin’s Steady Consolidation?

If Ethereum maintains support at $3,000, a rebound toward $3,500–$3,600 is plausible. However, a failure to hold this level could trigger a deeper correction to the $2,800 range, increasing bearish sentiment. The rising buying volumes, however, suggest that Ethereum might be gearing up for another bullish move, aligning with historical precedents.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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