The post Ethereum’s Rising Buying Volume May Hint at Potential Breakout Amid Current Price Decline appeared on BitcoinEthereumNews.com.

Could a potential breakout be next for the world’s largest altcoin? Ethereum’s increasing buying volume may signal accumulation and a potential price surge. Historical trends suggest rising buying volumes during price declines lead to significant recoveries. Ethereum’s price may be falling, but rising buying volumes indicate a potential market shift that could lead to a significant recovery. Price drops paired with rising buying volumes The data illustrated Ethereum’s taker buy volume – a metric tracking the volume of buy orders executed at market price – across all exchanges, overlaid with its 100-day simple moving average. Despite Ethereum’s 11% price decline from $3,750 in early January to $3,350 at press time, taker buy volume rose sharply – a sign of growing market activity. Source: Cryptoquant This trend mirrors the May 2024 accumulation phase, highlighted on the chart. Back then, taker buy volume surged past its 100-day SMA during a price correction, preceding a sharp 27% rebound to $4,750. The same pattern might be visible now, with taker buy volume exceeding $4 billion as the SMA trends upwards. Historically, such divergences between price and buying volumes indicate institutional accumulation or whale positioning. Could this mark the start of another accumulation-driven breakout for Ethereum? Historical patterns Ethereum’s historical price movements reveal a recurring pattern – price declines accompanied by rising buying volumes often precede significant surges. A notable instance occurred in December 2024, when Ethereum’s price fell to around $2,500. Despite this downturn, however, taker buy volume across exchanges increased, indicating accumulation by investors anticipating a rebound. This accumulation phase culminated in a rally that saw the price climb to approximately $3,700 in early 2025. Similarly, in May 2024, Ethereum noted a price drop, yet buying activity intensified, leading to a subsequent price surge. These patterns implied that rising buying volumes during price…

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Filed under: News - @ February 1, 2025 2:17 pm