Ethereum Records $17.9B in Spot Volume Despite 3% Drop

Ethereum (ETH) continues to command robust trading volume despite a recent 3% drop over the last 24 hours and the current bearish pressure.

The current market condition has not been especially favorable to Ethereum, the second-largest cryptocurrency. As one of the leading crypto assets, ETH has been at the forefront of the ongoing selloffs. Consequently, the token has dropped 10.33% this month, struggling to retain the $3,000 threshold.

This month’s price collapse follows an 8.62% close to June, which saw Ethereum give up the $3,700 and $3,500 psychological territories. Ethereum’s downturn is a product of its price correlation with Bitcoin (BTC), which has dropped 8.61% in July. IntoTheBlock data shows Ethereum has a 93% correlation with Bitcoin over the last month.

Ethereum Sees Increased Volume

Interestingly, despite the ongoing drop, market interest in Ethereum has not declined. Market data sourced by CoinMarketCap indicates that Ethereum’s 24-hour trading volume has not dropped below $10 billion this month. The lowest figure ETH has witnessed is $10.85 billion, recorded on July 7 during a 4.43% price dump.

The latest data shows that Ethereum sees a $17.927 billion volume over the last 24 hours despite a 3.09% drop. This makes it the third-largest asset by 24-hour volume, only behind Bitcoin and USDT. Two of Binance’s Ethereum trading pairs command 14.54% of the global volume, boasting a combined $2.605 billion. 

Further, IntoTheBlock confirms that large Ethereum transactions have been on the high side, with a 7-day peak of $8.62 billion on July 5. The increase in trade volume reflects sustained interest in Ethereum.

However, data on volume alone cannot provide insights into investor behavior in terms of bullish or bearish sentiments. 

A Trend of Excess Whale Demand

Typically, increased trading volume during a steep market collapse is a sign of growing selling pressure. However, Ethereum’s price has recorded some stability in recent times, hedging off subsequent declines. This confirms that the rise in trade volume is not necessarily a direct result of increased selloffs.

Data shows that bulls have bought over 6.065 million ETH ($18.62 million) in July. In contrast, bears have sold 5.815 million ETH worth $17.9 million within the same timeframe. This indicates that the Ethereum market has seen an excess demand of 250K ETH from large whales this month.

Ethereum could leverage this increased demand for a recovery move when the broader market recovers. However, to reach greater heights, it must first conquer the resistance at $3,079, aligned with Fibonacci 23.6%. A breach of this level would help ETH reclaim the $3,200 level, with the next roadblock at $3,251.