Ethereum's Market Trends

Ethereum’s Sell and Buy Volume Discrepancy

Since June 5, Ethereum’s Taker Buy Sell Ratio has been consistently below 1, indicating a higher sell volume in its Futures market compared to buy volume. This ratio, calculated using a seven-day simple moving average (SMA), has shown a decreasing trend according to CryptoQuant data.

A Taker Buy Sell Ratio below 1 implies that there have been more sell orders than buy orders in the Futures market. An analyst from CryptoQuant, ShayanBTC, pointed out that many futures traders have been aggressively selling Ethereum, either for speculative reasons or to take profits. This significant decline in the metric serves as a bearish sign, suggesting that the current downward trend may continue given the ongoing selling pressure.

Positive Funding Rate Amidst Bearish Trend

The drop in Ethereum’s Futures Open Interest since June 5th has confirmed the prevailing bearish sentiment. The Futures Open Interest, reported at $16.37 billion at present, has decreased by 2% from the earlier period, indicating a shift in sentiment from bullish to bearish as some Futures traders are closing positions rather than opening new ones.

Despite the bearish sentiment, a majority of Ethereum’s Futures traders have opened positions expecting a rise in prices. This sentiment is supported by the coin’s Funding Rate, which has remained positive since May 3rd according to Coinglass data. A positive Funding Rate indicates a significant demand for long positions.