Ethereum recently surpassed the $4,000 resistance level, trading at $4,003. This breakthrough has prompted excitement among investors, but market analysts caution about potential risks of profit-taking and corrections.
A CryptoQuant analyst, ShayanBTC, highlighted an increase in sell-side activity in Ethereum's futures market, indicated by the declining Taker Buy/Sell Ratio. This suggests market participants are becoming cautious, possibly impacting Ethereum's upward momentum and leading to a price correction.
Despite the cautious sentiment, Ethereum's market cap has exceeded $482 billion, and its daily trading volume is approximately $56.7 billion. The golden cross formation on Ethereum's price chart may indicate a significant rally similar to past bull markets.
Investors are advised to monitor selling pressure and market developments closely, as increased sell orders might slow Ethereum's growth, paving the way for potential price consolidation or pullback opportunities for new or long-term investors.
