ETH Has More Sell Volume Than Buy Volume in Its Futures Market Since June 5th
Since the 5th of June, Ethereum’s Taker Buy Sell Ratio, using a seven-day simple moving average (SMA), has been trending downward, indicating more sell volume than buy volume in its Futures market. The ratio has consistently been below 1, with the current ratio standing at 0.96. This metric measures the ratio between buy and sell volumes in the Futures market, with a value greater than 1 indicating more buy volume and a value less than 1 indicating more sell volume.
Impact on ETH’s Price and Futures Market
The decrease in Ethereum’s Taker Buy Sell Ratio suggests that Futures traders have been aggressively selling Ethereum, either for speculative purposes or to realize profits. This bearish signal indicates that the current downward retracement could persist if the trend continues. The decline in ETH’s Futures Open Interest since June 5th further supports this sentiment, as the total number of outstanding Futures contracts has dropped by 2%, signaling a shift from bullish to bearish sentiment.
Positive Funding Rate Signals Continued Price Growth
Despite some market participants’ bearish bias, the majority of ETH’s Futures traders have opened positions in favor of continued price growth. This is evident in the coin’s Funding Rate, which has remained positive since May 3rd. Funding Rates are used in perpetual Futures contracts to keep the contract price close to the spot price, with a positive rate indicating significant demand for long positions.
Looking Ahead for Ethereum
As Ethereum’s Taker Buy Sell Ratio continues to indicate more sell volume than buy volume in its Futures market, investors should be cautious of a potential continued downward trend in price. However, the positive Funding Rate suggests that there is still strong demand for long positions, signaling potential for price growth in the future. Keeping a close eye on market trends and indicators will be crucial for navigating Ethereum’s price movements in the coming weeks.
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