How Ethereum’s 70% Orderbook Imbalance Affects Traders

Key Points

Ethereum’s orderbook imbalance currently stands at 70%, which could indicate a potential price increase. Despite concerns in the ETF sector, Ethereum remains a dominant force in the DeFi space. Ethereum’s [ETH] price movements have been closely watched due to its failure to reach a new all-time high (ATH) in 2024, even as Bitcoin achieved its ATH in March.

This has led to speculation about a possible decline in Ethereum’s momentum. However, recent data related to the ETH/USDT pair provides a glimmer of hope for Ethereum enthusiasts.

Orderbook Imbalance and Ascending Triangle

According to data from Hyblock Capital, Ethereum is currently experiencing a significant 70% orderbook imbalance at a 1-2% depth. Historically, similar imbalances have preceded upward price movements. This bid imbalance suggests that Ethereum might witness a similar positive trend.

At the time of writing, Ethereum is forming an ascending triangle on the weekly timeframe, with its price respecting the 200-moving average. This consolidation pattern supports a bullish outlook for Ethereum, as ascending triangles typically lead to price breakouts.

• 70% bid imbalance hints at potential upward price movement.
• Ascending triangle pattern suggests a bullish trend.
• Respecting the 200-moving average strengthens the bullish case.

RSI Heatmap and Booming ETH-based Protocols

The weekly Relative Strength Index (RSI) heatmap shows that many cryptocurrencies are in the weak or neutral zone, with an average RSI of 40.22%. This indicates a market transition from an oversold condition.

As the RSI approaches more neutral levels, it could signal a potential upward movement for Ethereum, especially with the 70% bid imbalance suggesting a potential bottom.

Furthermore, Ethereum’s co-founder, Vitalik Buterin, has announced plans to donate his Layer 2 (L2) and project tokens to support public goods within the Ethereum ecosystem and charitable causes. This move could enhance Ethereum’s long-term prospects.

Despite speculation about Solana’s rise in the DeFi sector, Ethereum continues to dominate. Platforms such as Aave, Pendle, and Lido, all operating on Ethereum, are likely to drive further adoption and support its price increase.

Ethereum ETF Cumulative Flows

On a cautionary note, cumulative flows for Ethereum-based ETFs have reached an all-time low, currently standing at $562.3 million. While the existence of an ETF is a positive sign for Ethereum, the low demand poses a risk.

If demand does not improve, some ETF issuers may be forced to shut down their products. Nonetheless, ongoing developments within the Ethereum ecosystem could potentially lead to a price turnaround.