A market condition where selling pressure diminishes significantly, often leading to a price reversal.
Seller exhaustion is a phenomenon observed in financial markets when the willingness or ability of market participants to sell an asset at current prices becomes significantly depleted. This typically occurs after a period of sustained selling pressure, leading to a decrease in the volume of sellers. As selling pressure wanes, the remaining demand can exert more influence, potentially leading to a stabilization or reversal of the price trend.