Ethereum’s Market Order Imbalance Hits Record Negatives: $1,850 Is Now The Line In The Sand

Ethereum is attempting to stabilize around the $2,000 level as the broader crypto market shows tentative signs of relief. After weeks of persistent pressure, price action has paused its decline, but sentiment remains fragile. The recent rebound has helped ease immediate downside momentum, yet the technical structure still reflects a market recovering from significant damage rather than entering a confirmed uptrend.

According to a CryptoQuant analyst, 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. The intensity of this move becomes particularly evident when analyzing the Net Taker Volume (30-day moving average), a metric that measures aggressive market order activity. In February, this indicator plunged to its most negative level since last November, highlighting the dominance of aggressive sellers during the decline.

Such extreme negative readings typically reflect panic-driven execution rather than orderly repositioning. When taker volume skews heavily to the sell side, it often signals forced exits, stop-outs, and cascading liquidations across derivatives markets. While Ethereum’s attempt to hold $2,000 suggests that immediate selling pressure may be easing, the underlying data confirms that the market recently absorbed one of its most intense bouts of downside aggression in months.

Net Taker Volume Signals Capitulation — But Not Confirmation

The dominance of towering red bars in Ethereum’s Net Taker Volume underscores how aggressively sellers controlled the order books during the recent decline. When taker sell orders consistently exceed taker buy orders by such a magnitude, it reflects urgency. This is not passive distribution; it is market participants hitting bids aggressively, often under stress. The combination of panic-driven exits, systematic short positioning, and forced long liquidations likely amplified the move from $3,300 to sub-$1,900 levels.

Notably, the only meaningful cluster of green bars — representing aggressive buying — emerged in mid-January, coinciding with Ethereum’s local peak near $3,400. That brief resurgence in demand failed to sustain itself, after which sell-side momentum reasserted control. Structurally, this pattern suggests that upside liquidity was exhausted before a broader deleveraging cycle unfolded.

Extreme negative Net Taker Volume readings are often associated with capitulation phases. Historically, such flushes can mark exhaustion points, as aggressive sellers eventually deplete themselves. However, capitulation alone does not confirm reversal. For a structural shift to materialize, the imbalance must normalize. A contraction in red bars followed by sustained green dominance would signal renewed conviction from aggressive buyers.

Ethereum Struggles To Reclaim $2,000 As Downtrend Persists

Ethereum remains structurally weak despite brief stabilization attempts near the $2,000 level. The chart shows a clear breakdown from the $3,400–$3,600 region earlier this year, followed by a sequence of lower highs and lower lows — a textbook downtrend formation. The recent bounce has not altered this structure.

Price is currently trading below the 50-day, 100-day, and 200-day moving averages, all of which are sloping downward. This alignment confirms bearish momentum across short-, medium-, and long-term horizons. Notably, the 50-day average has accelerated lower, reflecting sustained selling pressure rather than a temporary liquidity vacuum.

The sharp decline toward the $1,850 zone was accompanied by a significant spike in volume, suggesting forced liquidations and aggressive distribution. Since then, volume has moderated during consolidation, indicating that while panic may have eased, conviction among buyers remains limited.

Technically, $2,000 functions as a psychological pivot rather than confirmed support. A sustained move above the 50-day average would be required to signal improving momentum. Conversely, failure to hold the current range could reopen downside risk toward deeper liquidity pockets.

Featured image from ChatGPT, chart from TradingView.com