Ethereum's Market Imbalance Hits Record Negative Levels

Ethereum's recent price action has been marked by a persistent decline, with the cryptocurrency attempting to stabilize around the $2,000 level. The broader crypto market shows tentative signs of relief, but sentiment remains fragile.

A CryptoQuant analyst notes that Ethereum endured a severe liquidation-driven sell-off in recent weeks, falling sharply from local highs near $3,300 to lows around the $1,850 region. This move was characterized by extreme negative Net Taker Volume readings, which often reflect panic-driven execution rather than orderly repositioning.

The dominance of aggressive sellers during this decline is evident in the towering red bars on Ethereum's Net Taker Volume chart. When taker sell orders consistently exceed taker buy orders by such a magnitude, it reflects urgency and stress among market participants.

While the recent rebound has helped ease immediate downside momentum, the technical structure still reflects a market recovering from significant damage rather than entering a confirmed uptrend. Ethereum remains structurally weak despite brief stabilization attempts near the $2,000 level, with the chart showing a clear breakdown from the $3,400–$3,600 region earlier this year.

The 50-day, 100-day, and 200-day moving averages are all sloping downward, confirming bearish momentum across short-, medium-, and long-term horizons. A sustained move above the 50-day average would be required to signal improving momentum.