A recent surge in Ether's net taker volume has led some analysts to suggest that Ethereum may be entering an early bottoming phase. According to data from CryptoQuant, the 30-day average of positive Ether net taker volume climbed to $142 million on March 17, reaching levels last seen on July 18, 2022.
The net taker volume measures the difference between aggressive buyers and sellers in derivatives markets, with a positive reading indicating that market orders lean toward buyers. This indicator has historically been a reliable signal of market bottoms, as observed during transitional periods where traders reposition and add exposure while the price stabilizes near a bottom.
However, despite the bullish supply-side pressure, the price response has remained relatively muted, possibly due to a lack of dominant buy demand. Crypto analyst Pelin Ay noted that 'the supply side is bullish, but there are no buyers.' This suggests that traders may still be hesitant to enter the market at current prices.