Ethereum faces aggressive selling as taker sellers outpace buyers by $350 million per day – Analyst
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Ethereum, the second-largest cryptocurrency by market capitalization, has had a poor year in 2024, underperforming Bitcoin and many altcoins throughout the year. However, as 2025 began, Ethereum began to show signs of recovery, rising more than 10% in less than a week. This initial surge has reignited hopes among investors and analysts who see strong performance possible this year.
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Top analyst Maartunn recently shared insightful data highlighting the aggressive short selling trend underway in the Ethereum market. According to Maartunn, taker sellers have dominated the market, outselling taker buyers by more than $350 million every day. This aggressive short selling could explain Ethereum’s underperformance in 2024, as continued selling pressure is likely to suppress upward momentum.
With the optimism of the new year, many believe that this short-selling trend may begin to reverse, creating conditions for Ethereum to regain its position as the market leader. As altcoin leaders overcome challenges, the coming weeks will be critical in determining whether this initial rally signals the start of a more sustained upward trend. Investors are watching Ethereum closely, anticipating that a reversal of this bearish trend could lead to an outstanding 2025 for the network.
Ethereum rises amid aggressive short selling trend
Ethereum is attempting to surpass its 2024 highs, but a decisive breakout remains elusive. Recent price movements indicate a potential rebound for ETH, with early upside in 2025. However, the way forward is unclear as significant selling pressure continues to weigh on altcoin leaders.
Top analyst Maartunn recently shared insightful data from CryptoQuant, shedding light on current market dynamics. Data shows that Ethereum is experiencing aggressive selling, with taker sellers dominating trading activity. Over $350 million more sell-side pressure has been recorded than buy-side activity, creating an environment that will make it difficult for ETH to break out of its current range.
This trend will suppress prices in the short term, but cannot continue indefinitely. In market cycles, such aggressive short selling is often seen as a harbinger of a reversal, as sellers’ momentum dries up and buying pressure begins to build. Long-term investors reportedly see this phase as an opportunity and are positioned to take advantage of Ethereum’s relatively low price.
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The next few weeks will be critical as Ethereum navigates these dynamics. A clear break above last year’s high could signal the start of a broader rally, sparking renewed interest and potentially reversing the ongoing short selling trend. Currently, ETH is still at a critical juncture.
Price Test Critical Level
Ethereum is trading at $3,650 as of 2025 and is receiving significant attention early in the year. The price recently showed impressive strength and broke the 4-hour 200 EMA. This is a technical indicator that is often considered an important threshold for long-term trends. ETH is currently testing the 200MA over the same period, a level that could confirm a bullish trend if it recovers and holds as support.
A daily close above 200MA would solidify Ethereum’s upward momentum, paving the way for a massive rally that could challenge and surpass last year’s highs. This move will reinvigorate market sentiment and create additional buying pressure, pushing Ethereum to new levels in the near term.
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However, even the optimistic outlook is not without risks. If Ethereum fails to hold the 200 MA as support, the market could witness a new wave of selling pressure. This will likely push ETH to lower levels, eroding recent gains and prolonging the fight to regain upward momentum.
Featured image by Dall-E, chart by TradingView
