Here’s what the data related to the Ethereum futures market suggests as to whether sentiment around ETH is bearish or bullish.
The buy-sell ratio of Ethereum takers has increased significantly recently.
In a new post on CryptoQuant Quicktake, an analyst talks about the outlook for Ethereum based on futures market data. The metric of interest here is the “taker buy-sell ratio,” which tracks the amount of taker buys and taker sells of ETH on derivatives platforms.
A value of this indicator greater than 1 means that taker buy or long volume is higher than taker sell or short volume, and therefore there is a predominantly bullish sentiment in the market.
On the other hand, if the indicator is below the mark, it means that bearish sentiment prevails among prospective users, as more sellers are willing to sell at lower prices.
Here is a graph showing the trend of the 14-day Simple Moving Average (SMA) Ethereum Taker Buy Sell Ratio over the past few months.
The 14-day SMA value of this indicator seems to have increased sharply in recent days. Source: CryptoQuant
As seen in the graph above, the 14-day SMA Ethereum Taker Buy Sell ratio has increased rapidly recently, suggesting that the market balance is changing.
In addition to the spike in this indicator, asset prices have also skyrocketed. This graph shows that a similar trend in the indicator was observed prior to the price increase in the first quarter of this year.
Based on recent trends, quants comment:
This spike indicates strong buying interest in the perpetual market and suggests significant bullish sentiment. If this upward trend in the taker-buy/sell ratio continues, it will confirm a possible medium-term bullish trend in the market and the price will likely rise towards higher values.
It remains to be seen whether the 14-day SMA taker-buy-sell ratio will continue to rise in the coming days, thus supporting a possible bullish setup for this cryptocurrency.
Speaking of futures markets, CME Group has recently increased its dominance in the Ethereum and Bitcoin calendar futures markets, as analysis firm Glassnode pointed out in an X post.
CME Group Open Interest Advantage Trend in BTC and ETH Calendar Futures Market | Source: Glassnode on X
The chart above shows CME Group’s open interest dominance data. Open interest refers to the number of contracts currently open in the calendar futures market.
CME Group currently appears to have 83% and 65% of the calendar open interest in Bitcoin and Ethereum, respectively.
ETH price
Ethereum’s recovery has stalled in recent days as the price of Ethereum remains hovering around $3,400.
The coin’s price appears to have been flat since its spike | Source: ETHUSD on TradingView
Dall-E, CryptoQuant.com Featured image from Glassnode.com, Chart from TradingView.com
