Here’s Why Ethereum Slipped Below $2,000 – Details

On Friday, February 27th, the price of Ethereum fell by more than 5%, falling to just above the $1,900 mark. Interestingly, a recent on-chain evaluation shows the potential reason behind the altcoin’s latest struggles below $2,000.

For context, the Taker Sell Volume metric measures the total volume of sell orders filled by takers (market participants who match existing orders created by market makers) in Ethereum perpetual swaps. Hence, a rise in the indicator can be interpreted as a bearish signal, implying that the market is being flooded with sell orders.

The price of ETH, which started the day above the $2,000 mark, soon dropped to around $1,920 as the weekend approached.

As of this writing, the price of ETH stands at around $1,925, reflecting an over 5% decline in the past 24 hours. However, the past week’s action was relatively mild, with the second-largest cryptocurrency losing nearly 2% of its value in the past seven days.

The selling pressure witnessed by the Ethereum price over the past day is not new, as it has been the case over the past few weeks. This trend can be seen in the recent performance of ETH exchange-traded funds (ETFs).

Market sentiment and demand need to shift optimistically for the ETH price to witness a bullish reversal soon.