ETH Buying Pressure

Definition ∞ ETH Buying Pressure describes a market condition where there is a strong demand for Ethereum’s native token, Ether. This refers to a scenario where the volume of buy orders for ETH significantly exceeds the volume of sell orders, leading to upward price movement. Factors contributing to this pressure include increased network usage, institutional investment, decentralized finance activity, or anticipation of protocol upgrades. Sustained buying pressure indicates robust market confidence and potential for continued appreciation.
Context ∞ ETH Buying Pressure is a consistently reported metric in crypto news, often cited as a key indicator of Ethereum’s market health and future price trajectory. Discussions frequently link this pressure to network upgrades like the Merge, which reduced ETH supply issuance, and the growth of the DeFi ecosystem. Observing trends in buying pressure provides critical context for understanding market sentiment and potential price action.