Is Ethereum’s Price Under Pressure? Here Is What Futures Data Signals

Samuel Edyme

1 year ago

3 mins read

Is Ethereum's Price Under Pressure? Here Is What Futures Data Signals

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Recent data from CryptoQuant has revealed a bearish phase for Ethereum (ETH), as futures traders exhibit strong selling activity.

The crypto community closely monitors these developments, especially with Ethereum struggling to hold above the $3,500 mark, adding tension to an already volatile market.

Ethereum Market Sentiments And Technical Indicators

Data from CryptoQuant has shed light on the current market conditions for Ethereum, suggesting a potential continuation of the current downtrend. The analysis focuses on the ‘Taker Buy Sell Ratio,’ a key indicator of market sentiment in the futures arena.

This metric assesses the balance of buying versus selling activity; a ratio above 1 indicates dominance by buyers, reflecting stronger buying pressure, while a value below 1 highlights aggressive selling.

Unfortunately for Ethereum investors and enthusiasts, this ratio has recently dipped below 1, signaling that sellers are overpowering buyers.

Ethereum (ETH) taker buy sell ratio. | Source: CryptoQuant

This downtrend is mirrored by the significant drop in the Taker Buy Sell Ratio, which has steeply declined, showing a clear shift toward seller dominance.

Such aggressive selling could stem from traders aiming to capitalize on speculative gains or seeking to mitigate risks amidst heightened market volatility.

$ETH‘s plummet might persist in the short term

“This trend suggests that the majority of futures traders have been selling #Ethereum aggressively, either for speculative purposes or to realize profits.” – By @Greatest_Trader

Link 👇https://t.co/yz9DVphQ8l

— CryptoQuant.com (@cryptoquant_com) June 11, 2024

The persistence of this trend is a concerning signal for Ethereum’s short-term price outlook as it struggles to find support levels that could stabilize its value. The crypto analyst, Shayan BTC, who posted this update on the CryptoQuant quick-take platform, particularly noted:

This significant drop in the metric is a bearish signal, suggesting that the current downward retracement could persist if this trend continues.

Implications: ETH’s Current Trading Behaviour

The bearish indicators are more than a fleeting concern; they have tangible impacts on Ethereum’s market position. Over the past week, Ethereum has seen a 2% decline, with a sharper drop of nearly 6% in the last 24 hours alone, bringing its price down to $3,471.

Ethereum (ETH) price chart on TradingView — ETH price is moving upward on the 2-hour chart. Source: ETH/USDT on TradingView.com

This correction follows a recent high of nearly $4,000 in late May, illustrating the volatile swings that can affect investor sentiment and market dynamics.

Furthermore, Ethereum’s challenges are compounded by the rise of competing platforms like Polygon, which recently reported a higher monthly active user count than Ethereum.

MAU (Monthly Active Users) on @0xPolygon surpassed Ethereum.

Probably nothing. https://t.co/bpxIxu7ZcF

— Mihailo Bjelic (@MihailoBjelic) June 11, 2024

While this does not directly influence Ethereum’s price, it signals shifting preferences within the blockchain ecosystem, potentially diverting attention and investment from Ethereum.

Such shifts are crucial for investors to monitor, as they could dictate the strategic directions of Ethereum and its emerging competitors in blockchain technologies.

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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