Onchain Signal Suggests Ether May Have Bottomed, But Risks Remain

A key onchain indicator for Ether climbed to its highest level in more than three years, with the 30-day average of positive net taker volume reaching $142 million on March 17 — a level last seen on July 18, 2022. The signal bolsters the case for an early bottoming phase even as spot demand remains weak and price action muted.

Data suggests ETH may stabilize near a local floor around $2,000, though a sweep of lower price levels is still possible. The net taker volume measures the difference between aggressive buyers and sellers in derivatives markets, and a positive reading indicates market orders are leaning toward buyers.

Similar expansions have appeared during transitional periods when traders reposition and add exposure while price stabilizes near a market bottom, as happened in July 2022 and August 2020. The Ethereum Coinbase premium index has been positive since Feb. 24, pointing to growing spot demand from U.S.-based traders.

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