ETH trading volume surges to a 3-year peak, sparking concerns over potential price drop

ETH trading volume surges to a 3-year peak, sparking concerns over potential price drop

Ether's net taker volume surged to $142 million, indicating strong buying interest, yet price action remains muted. Will ETH stabilize around $2,000 or drop to $1,976?

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The 30-day average of positive net taker volume for Ether (ETH) surged to $142 million on March 17, marking the highest level since July 18, 2022. This metric reflects the balance between aggressive buying and selling in the derivatives market, indicating a potential shift toward buyers. Despite this positive sign, demand in the spot market remains weak, and analysts caution that prices may still decline further in the coming weeks.

Currently, ETH appears to be stabilizing near a local floor around $2,000, with critical short-term support aligning with the 100- and 200-period exponential moving averages. However, a breakdown could see prices test lower liquidity zones, particularly between $2,100 and $1,905. Notably, a significant cluster of long positions, valued at over $3 billion, is positioned around $1,976, where liquidations could occur if prices drop into this range.

Additionally, the Ethereum Coinbase premium index has remained positive since February 24, signaling increased demand from U.S. traders. However, analyst Pelin Ay highlighted that despite reduced supply-side pressure, the market has yet to see a strong buy response, suggesting that many traders may still perceive current prices as too high.

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