Ethereum’s (ETH) ‘negative’ gauge could actually mean a bottom is forming

Ethereum looks shaky at first glance, but Alphractal’s data and Van de Poppe’s charts suggest the worst may be over.

Ethereum (ETH) has once again fallen below the $4,000 mark as the market tumbled following the Federal Reserve Chairman’s unexpectedly aggressive comments on Wednesday. As a result, ETH’s buy/sell pressure delta has turned negative, while on-chain volume has also started to decline.

But Alpharactal believes this combination may not be as bearish as it seems.

Real euphoria has not yet begun

According to the latest update shared According to crypto analytics firm Alphractal, whenever this measure drops below zero, one of two outcomes typically occurs: either the price has already bottomed under temporary selling pressure, or the market slides into a long-term downtrend when the Delta turns deeply negative.

However, the company explained that current figures do not indicate a severe downturn like the one seen between February and April. Meanwhile, the decline in on-chain volume, which measures the total USD value of ETH transactions, reflects declining public interest. This is a common phenomenon during ‘daunting’ or consolidation phases in the market.

These factors together indicate that Ethereum may be in a phase of silent accumulation rather than outright decline. Alphractal points out that the combination of social disbelief and a slightly negative buying/selling pressure delta could imply that broader market euphoria has yet to begin.

“The data tells a story about what is really happening on the chain – and if you look closely, things are not as bad for ETH as many think.”

Green weeks coming up?

Beyond on-chain data, crypto market analyst Michaël van de Poppe be shows that Ethereum continues to show strength despite recent market uncertainty. He stated that ETH is firmly above a significant horizontal support zone, a price region that has repeatedly served as a solid base during recent consolidation periods.

Furthermore, Ethereum remains above its 20-week moving average, a widely monitored measure that reflects the medium-term health of the market. Van de Poppe explained that this alignment between price support and moving average stability is a sign of potential bullish momentum forming beneath the surface.

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If ETH maintains these technical levels, it expects a shift to positive weekly closes heading into November, meaning the market could be preparing for a recovery after weeks of movement within certain ranges and low investor sentiment.