As ethereum (eth) retests the $3,500 low amid the market-wide decline, CryptoQuant analyst ShayanBTC suggests that the asset could face further declines if current trends in the futures market do not improve.
Recent market turbulence has pushed several altcoins to their lowest levels in weeks. Notably, ethereum recently fell to the lower spectrum of the $3,500 threshold for the first time in over three weeks, retesting the low of $3,503 today.
Amid bearish conditions, investor anxiety has returned. Futures market data indicates that market participants have turned bearish, betting on steeper declines and continued turbulence.
In a recent twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=shayantbtc” target=”_blank” rel=””>analysis, ShayanBTC drew attention to the Taker Buy Sell Ratio, which measures the aggressiveness of buyers versus sellers in the futures market. A ratio greater than one indicates that buyers are dominant, while a ratio less than one suggests that sellers are more aggressive.
According to market data, the seven-day moving average of this ratio has been falling lately and has failed to surpass one. This downward trend indicates that most futures traders are selling ethereum aggressively.
This behavior could be driven by speculation or profit-taking amid current market conditions. ShayanBTC maintains that the significant decline in this ratio serves as a bearish signal, suggesting that the downward trend in ethereum price could continue if this selling pressure persists.
<img decoding="async" width="1024" height="542" src="https://crypto.news/app/uploads/2024/06/Screenshot-2024-06-11-131309-1024×542.png” alt=”Analyst Projects Steeper Drops in ethereum if Futures Market Trend Doesn't Improve – 1″/>
Meanwhile, despite derivatives volume increasing 131% to a record $24.8 billion, ethereum's long/short ratio, which measures the relationship between long (bullish) and short (bearish) positions, has been witness a massive drop. This ratio has plummeted to 0.8921, suggesting a dominance of short positions, according to Coinglass. eth” target=”_blank” rel=””>data.
ethereum is currently trading at $3,537 after a slight recovery from the low of $3,503 recorded this morning. Despite a 3.58% drop today, the crypto asset is trading above the 200-day EMA ($2,945) and 50-day EMA ($3,381).
