EthereumETHShayanBTC, a CryptoQuant analyst, says that if the current trend in the futures markets does not change, the asset may face further losses.
The market turmoil has brought multiple altcoins back to the lowest prices in several weeks. Ethereum has recently fallen to lower levels. the $3,500 threshold For the first time since over three weeks the price of the dollar fell to $3.503 earlier today.
Investor anxiety is returning amid the current bearish market conditions. The data from the futures markets shows that the market has turned more bearish. Participants are betting on further declines, and the continuation of market turmoil.
A recent analysisShayanBTC drew attention to Taker Buy-Sell Ratio which is a measure of the level of aggressiveness between buyers and sellers on the futures markets. A ratio higher than one shows that the buyers dominate, and a ratio lower than one suggests more aggressive sellers.
The seven-day average ratio of the market has declined in recent months, and it is not able to rise above 1. This trend shows that the majority of futures trader are aggressively selling Ethereum.
Such behavior might be a result of speculating or taking profits in light of the current conditions. ShayanBTC claims that the decline of this ratio represents a warning sign, indicating that Ethereum’s price may continue to fall if the selling pressure is persistent.
Meanwhile, despite derivatives volume Ethereum’s ratio measuring the difference between long and short positions (bullish or bearish) has dropped by a staggering 131%. The ratio fell to 0.8921, indicating a strong dominance by short positions. data.
Ethereum’s price is now $3,537, following a slight recovery from its $3,503 low recorded this morning. Even though the price has dropped by 3.58% drop The crypto asset is trading above its 200-day EMA of $2,945 and the 50-day EMA of $3385.
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Source: crypto.news