- Ethereum’s Taker Buy Sell Ratio has consistently been below 1 since June 5, indicating more sell than buy volume.
- Recent data shows a 2% decline in Ethereum’s Futures Open Interest, suggesting a shift to bearish sentiment.
The cryptocurrency market is constantly evolving, and Ethereum (ETH), one of the leading digital assets, is no exception. Recent data from on-chain analytics firm CryptoQuant reveals a shift in trading activities, particularly in the futures market, which might influence Ethereum’s price trajectory.
Ethereum’s Taker Buy Sell Ratio, which measures the balance between buy and sell volumes in its futures market, has consistently registered below 1 since June 5th. This indicates a dominance of sell volume over buy volume.
Specifically, the ratio was recorded at 0.96, based on a seven-day simple moving average (SMA). A ratio below 1 is typically interpreted as bearish, suggesting a greater inclination towards selling among traders.
This Downward Trend in the Taker Buy Sell Ratio points to increased Selling Activity
ShayanBTC, a pseudonymous analyst at CryptoQuant, interprets this trend as a sign that traders are either taking profits or speculating on a price drop. The sell-off could potentially maintain or deepen the current downward price movement if the trend persists.
“This trend suggests that most futures traders have been selling Ethereum aggressively, either for speculative purposes or to realize profits. This significant drop in the metric is a bearish signal, suggesting that the current downward retracement could persist if this trend continues.”
Additionally, Ethereum’s Futures Open Interest—which tracks the total number of open, unsettled futures contracts—has seen a slight decrease. As of the latest reports, the Open Interest stands at $16.37 billion, down by 2% since June 5th. This drop suggests that some traders are closing their positions, a move often associated with a shift from a bullish to a bearish market sentiment.
Despite these bearish signals, not all indicators forecast a downturn. Ethereum’s funding rate has remained positive since May 3rd, according to data from Coinglass. A positive funding rate typically reflects a prevailing sentiment among traders to maintain or enter long positions, anticipating an increase in prices. This indicates that, while some traders are selling, a significant portion remains optimistic about Ethereum’s future price.
Ethereum’s market is showing mixed signals
On one hand, the increase in selling activity, as evidenced by the Taker Buy Sell Ratio and the decline in Futures Open Interest, suggests a bearish sentiment.
On the other hand, the positive funding rate offers a contrasting view, indicating that many traders still expect the price to rise.
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Ethereum (ETH) Current Price: $3,508.10 USD (down $158.10 USD, equivalent to -4.31%).
Bullish Movement: Ethereum has managed to break out of a megaphone pattern, indicating possible future price increases.
