Warning sign for ETH price? Ethereum volume profile is down 90% since March 2020
Ether’s 78% price recovery since July 2022 is at risk of exhaustion due to an unconvincing volume profile. The price of Ethereum’s native token, Ether (ETH), has recovered 78% since June 2022. But this doesn’t guarantee further upside, particularly with declining trading volumes suggesting that the risk of a major correction is high. Ether volume profile drops 90% since March 2020 A “volume profile” indicator displays trading activity across prices, with the blue indicating buying volume and the yellow indicating sell volume. Illustration of a volume profile bar. Source: TradingView In March 2020, when the market bottomed, Ether’s volume profile on a weekly chart showed about 160 million ETH trades across the $85–$270 price range. At the time, the selling volume was greater than the buying volume by around 4 million ETH. But Ether buying volume regained momentum after ETH price rallied above $270 in July 2020. Notably, between July 2020 and November 2020, the Ether volume profile ...