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.
A “volume profile” indicator displays trading activity across prices, with the blue indicating buying volume and the yellow indicating sell volume.
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.Read more on cointelegraph.com