Ethereum traders are turning increasingly bearish as prices have crashed more than 9% in the past week. Notably, the prediction platform Polymarket now shows a 56% probability that Ethereum will fall below $2,000 before the end of the month.
Meanwhile, CoinMarketCap data shows $ETH trading slightly above $2,100 at press time, while on-chain data and trading activity indicate aggressive selling pressure building across the market.
Binance Sell Pressure Accelerates
CryptoQuant analyst Amr Taha noted that Ethereum followed Bitcoin lower as taker sell volume surged on Binance. According to the analyst, Binance Taker Sell Volume climbed above $1.1 billion while $ETH moved toward levels below $2,100.
Taker sell volume tracks market sell orders executed instantly against existing bids. When this metric spikes during sharp declines, it usually points to panic selling, forced liquidations, or short-term bearish positioning.
The analyst said the timing of the move was important because selling pressure appeared across both Bitcoin and Ethereum simultaneously, rather than remaining isolated to BTC.
Additional pressure appeared through the exchange inflow data. According to CryptoOnChain, more than 225,000 $ETH moved into Binance in a single day, marking the largest exchange netflow spike since May 2023.
TD Sequential Signals Possible Reversal
Crypto analyst Ali Martinez highlighted a weekly TD Sequential sell signal that recently appeared on Ethereum’s chart. He noted that previous TD Sequential signals on Ethereum produced major moves over the past year.
Buy signals in April and June last year led to rallies of 86% and 134%, while a sell signal in August resulted in a 63% decline. Based on the latest setup, Martinez believes Ethereum may be entering another corrective phase.
The analyst outlined several downside targets, including $1,900 in the short term, $1,595 in the medium term, and $1,090 over the longer term. Martinez also pointed to Ethereum trading inside a long-term parallel channel on the weekly timeframe.
According to his chart, the lower boundary near $1,071 could eventually become a major support and accumulation zone if selling pressure continues.
Related: Ethereum Price Prediction: February Accumulators Are Selling Into the Dip as $ETH Drops 5.5%
