Ethereum
Ethereum at $4,000 now? THIS shows that sellers are backing down
- ETH’s Taker Buy Sell ratio has recovered towards 1.
- This suggests a decline in selling pressure in its futures market.
Ethereum [ETH] The Taker Buy Sell ratio, observed using a 7-day simple moving average (SMA), was on the verge of breaking above its center line 1 at press time, according to data from CryptoQuant.
This suggests a decline in sell orders in the coin’s perpetual futures market.
Source: CryptoQuant
ETH’s Taker Buy Sell ratio measures the ratio of buying and selling volumes of the coin on its futures market.
When the metric approaches 1 or returns a value greater than 1, it signals greater buying volume in the market than selling. Conversely, a value less than 1 indicates a higher selling volume than a buying volume.
At the time of writing, ETH’s buy-sell ratio was 0.99, having climbed 3% month-to-date.
Before that, this measure was in decline. In a recent reportpseudonymous CryptoQuant analyst ShayanBTC noted that the ETH bid-sell ratio –
“Has been consistently below 1 over the past few months, suggesting sellers have been more active in the ETH futures market.”
According to the analyst, the ratio changed course when the recent rally began and has since climbed with the price of ETH.
“This upward trend in the Taker Buy Sell ratio indicates a potential change in market dynamics. If the ratio continues to rise, it could signal a reduction in aggressive selling pressure.
ETH is in good hands
A closer look at the ETH futures market confirmed the possibility of continued price increases. According to Coinglass dataThe coin’s Futures Open Interest has reached a new all-time high of $16 billion.
Source: Coinglass
Futures Open Interest tracks the total number of outstanding futures contracts or positions that have not been closed or settled.
When it increases like this, it suggests that more market participants are opening new positions.
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Additionally, the coin’s funding rate remained positive. This is used in perpetual futures contracts to ensure that the contract price remains close to the spot price.
Source: Coinglass
When ETH futures funding rates return a positive value, it means there is strong demand for long positions. This is a bullish signal and an indicator that the altcoin price will continue to grow.