📰 Why Is the Order Book Shrinking After ETH Surged 70%?

ETH surged nearly 70% over the past quarter, but compared with BTC, its market depth has become noticeably thinner. This means there are fewer buy and sell orders in the order book—like footprints disappearing from the beach as the tide goes out. Suddenly, it seems no one is willing to step in between ETH and BTC. That’s a major signal for all traders.

Why does this news matter?
The main reason the order book is shrinking even as Ethereum surges 70% is that investors are chasing high returns while fearing a pullback. It’s like people chasing a rally in the stock market: they only care about prices going up, and run for the exits when they fall. Behind this are institutions positioning early and retail traders buying into the rally, while both fear a sudden liquidity crunch. In connection with other recent events, regulatory uncertainty is making investors prefer to hold cash rather than take large positions.

Market impact
ETH may continue to rise in the short term on momentum, but a shrinking order book means that any wave of profit-taking could trigger a sharp drop. The impact on BTC is likely to be limited, but it could draw funds back from ETH. In terms of the regulatory environment, this behavior suggests the market has become more sensitive to policy changes. A similar historical example: order-book shrinkage also occurred toward the end of the 2018 bull market.

Trading approach
💡 ETH is likely to encounter resistance in the $2,725.66–3,200 range. If it fails to hold this time, selling pressure could accelerate. This view is invalidated if regulators suddenly announce stricter policies.

$BTC $ETH #BTC #ETH

【Conditions that would invalidate this view】If regulators suddenly announce stricter policies, this view is invalidated.
【Disclosure of position】This article was not sponsored by any project, and the author does not hold any of the assets mentioned.
Source: CryptoBriefing

⚠️ This is not investment advice. Predictions are for reference only.

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