Usman Salis
Ethereum just hit $4,793 in August – its best run this year. But now? Things are looking pretty rough. ETH is sitting at $4,295 and could easily drop below $4,000 if bears keep pushing.
Here's what happened: After months of boring sideways action, ETH finally got some momentum in July and early August, hitting that sweet $4,793 peak on August 14. But you know how crypto works – what goes up fast often comes down even faster. Traders who've been waiting all year for a decent pump started cashing out, and now we're seeing serious selling pressure across the board.
ETH Futures Traders Are Dumping Hard
The numbers don't lie – futures traders are basically panic selling right now. ETH's taker-buy/sell ratio has been stuck below 1.0 since August started, and CryptoQuant shows it's currently at 0.92. Translation? Way more people are selling than buying.
Here's the deal: when this ratio is above 1.0, it means buyers are aggressively chasing the price up. But when it's below 1.0 like now, sellers are in control and usually dumping for profits or just getting scared. ETH has been below that magic 1.0 line all month, which tells us futures traders keep hitting the sell button.
Ethereum (ETH) Traders Playing It Safe Now
Another red flag? ETH's Estimated Leverage Ratio (ELR) just hit 0.66 – the lowest it's been in five days according to CryptoQuant. This basically measures how much leverage traders are using, and right now they're backing off big time.
When leverage drops like this, it means traders are getting cold feet and don't want to risk getting liquidated if prices tank further. Nobody wants to get rekt with high leverage when the market's looking this shaky.
ETH Price Prediction: $3,491 or $4,793 – Which Way Will It Go?
Right now ETH is trading around $4,295, and honestly, it could go either way. If the selling pressure keeps up, we're looking at a test of $4,063 support first. If that breaks? We could see ETH drop all the way to $3,491.
But crypto's weird like that – sometimes when everyone thinks it's going down, it suddenly rockets back up. If buyers step in and defend these levels, ETH could easily bounce back toward that $4,793 high.
The next few days are gonna be crucial. Keep an eye on that $4,000 level – if it holds, we might see a recovery. If it breaks, buckle up for a ride down to $3,491.
Usman Salis
