Recently, the price of Ethereum (ETH) has experienced a pullback, which can be interpreted from the perspective of the volume-price relationship. Last week, the weekly Trading Volume of ETH significantly increased, but the price increase was relatively limited. This divergence between volume and price suggests that market demand remains strong, but new supply pressure has also emerged.

The change in this supply and demand relationship may stem from some investors choosing to take profits at the current price level. Nevertheless, from the overall market structure, ETH still shows a stronger advantage compared to Bitcoin (BTC).

The upcoming market trend will largely depend on the speed at which this new supply is absorbed. It is worth noting that, even though there are views suggesting that BTC may have peaked, the highest point for ETH is likely yet to come.

The current market conditions reflect the common supply and demand dynamics and investor psychology in cryptocurrency investment. As new supply is gradually absorbed by the market, the price trend of ETH may experience new changes. Investors should closely monitor market trends, weigh risks against opportunities, and make informed investment decisions.