Despite Ethereum’s sharp surge, with the coin hitting nearly $ 4k, the on-chain data shows that there is even more room for the bull run to continue.
Ethereum: “All Exchanges Taker Buy Sell Ratio” shoots up
As mentioned in a CryptoQuant article, the ETH buy-sell volume has risen sharply on all exchanges today.
The “All Exchanges Taker Buy Sell Ratio” (or volume) is an indicator that shows the relationship between the long volume and the taker-seller volume.
Well, common sense says that every trade needs a buyer and a seller – how can there be a difference between the two quantities?
To understand the concept of taker buy and sell volumes, one must first understand the idea of taker and maker. I quote the CryptoQuant data guide:
“Taker: A taker trade refers to an order that is traded before it is added to the order book. All market order trades are takers. “
“Maker: A maker trade is an order that is added to the order book (e.g. a limit order). These orders add volume to the order book and help “make the market”. “
If these takers buy ETH at the price set by the makers, the amount of coins traded contributes to the volume of the taker sellers. This volume is known as the “seller” because it can drive prices down.
On the other hand, takers who sell to makers at the ask price can drive prices up and thus contribute to the volume of buyers.
The ratio between these two volumes is the taker-buy-sell ratio. If the taker buy volume is higher than the sell volume (i.e. the value of the indicator is above 1), it means that more trades are being made at the ask price. This shows that there is more demand and prices are rising.
Here is a chart that shows what the value of this metric looks like for Ethereum at the moment:
A high value of the indicator, as at the moment, suggests that the buying volume of Ethereum takers far exceeds the sales volume.
A similar spike was seen in mid-August, and the price rose as a result. If the indicator is to be believed, the current high value could also lead to a further upward movement.
At the moment (time of this writing) Ethereum is trading at just under $ 4,000. The coin has risen 20% in the past seven days. The monthly growth for the coin is around 45%. The following chart shows the development of the ETH value over the past three months:
Proof of text: Newsbtc
Top broker for buying and trading cryptocurrencies
- Buy real Bitcoin or Bitcoin CFDs
- Wallet and exchange in one
- 14+ cryptos
- Excellent trading tools
- Large knowledge and training database
- Very good spreads
Cryptocurrencies are a very volatile, unregulated investment product. Your capital is at risk.