Ethereum significantly underperformed Bitcoin during this latest rally. Here’s why this is so, according to a CryptoQuant analyst.
Ethereum net taker volume has been mostly negative recently
The taker’s net volume is here an indicator that allows you to track the difference between the taker’s purchase volume and the taker’s sale volume on Bitcoin. forward market.
When the value of this metric is positive, it means that the taker’s buying volume currently dominates the taker’s selling volume. Such a trend implies that buying pressure could be strong in the market currently.
On the other hand, negative values could suggest the presence of bearish sentiment among investors, as selling pressure is greater than buying pressure.
Now here is a chart that shows the trend in Ethereum net taker volume in 30-day moving average (MA) over the past few years:
Looks like the 30-day MA value of the metric has been near the neutral mark in recent days | Source: @JA_Maartun on X
As the chart above shows, Ethereum net taker volume has been mostly negative over the past few months, implying that sentiment around the asset has remained bearish.
Bitcoin, on the other hand, has seen periods where taker buying volume has exceeded taker selling volume, as shown in the chart shared by the analyst a few days ago.
The 30-day MA value of the indicator seems to have been green in the last few weeks | Source: @JA_Maartun on X
Most notably, Bitcoin net buyer volume is currently significantly positive, suggesting the strong buying pressure present in the market. Unsurprisingly, BTC strong recovery came next to these positive values of the metric.
Ethereum has no such buying pressure at the moment. Maartunn believes this is the reason why the ETH price has recently performed significantly poorly compared to BTC.
Ethereum still hasn’t reached the highs set earlier in the year
Ethereum’s underperformance relative to Bitcoin is easily seen in the asset’s year-to-date chart.
ETH has enjoyed some rise during the past month | Source: ETHUSD on TradingView
At the same time that Bitcoin was seeing its rally thanks to very positive net volume from takers, Ethereum also saw its own surge. This rise, however, is nowhere near as strong as that of the original cryptocurrency, as ETH is still trading around $1,800, which is significantly lower than the high of around $2,100 that assets declined in April.
Not only has Bitcoin surpassed July’s high of $31,000, but it has also done so in spectacular fashion, as it is now trading above the $34,000 level, which is significantly higher.
If net taker volume is anything to go by, the second-largest cryptocurrency could continue to underperform the largest, as long as investor sentiment towards it remains negative.
Featured image from DrawKit Illustrations on Unsplash.com, charts from TradingView.com, CryptoQuant.com