Here's what data from the ethereum futures market suggests regarding whether sentiment around eth is bearish or bullish.
ethereum Taker's buy/sell ratio has seen a sharp increase recently
In a new CryptoQuant Quicktake mailAn analyst has spoken about ethereum’s prospects based on futures market data. The main indicator here is the “Taker Buy Sell Ratio”, which records the buying and selling volumes of eth on derivatives platforms.
When the value of this metric is greater than 1, it means that the taker's long position or buying volume exceeds the taker's short position or selling volume and therefore there is a majority bullish sentiment in the market.
On the other hand, the fact that the indicator is below the mark implies the predominance of a bearish mentality among future users, as more sellers are willing to sell at a lower price.
Now, here is a chart showing the trend in the ethereum Taker 14-day Simple Moving Average (SMA) buy-sell ratio over the past few months:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Bullish-or-Bearish-What-the-Futures-Market-Data-Says.png" alt="ethereum Taker Buy/Sell Ratio” width=”1280″ height=”720″ data-recalc-dims=”1″/>
The 14-day SMA value of the metric appears to have been sharply going up in recent days | Source: CryptoQuant
As can be seen in the chart above, the ethereum Taker 14-day SMA buy-sell ratio has seen a rapid increase recently, implying that the balance in the market has been shifting.
Along with this rise in the indicator, the asset price has also seen an increase. The chart shows that a similar trend was also observed in the metric in the period leading up to the price rally in the first quarter of the year.
Based on the recent trend, the quantitative analyst comments:
This increase indicates a strong buying interest in the perpetual market, suggesting a notable 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, with the price likely to rise towards higher values.
It remains to be seen whether the 14-day SMA’s buy-sell ratio will continue to rise in the coming days, which would confirm this potential bullish setup for the cryptocurrency.
Speaking of the futures market, the CME Group has recently seen its dominance in the calendar futures market for ethereum and bitcoin grow, as noted by analytics firm Glassnode in an article published on x x.com/glassnode/status/1813882560466042956″ target=”_blank” rel=”noopener nofollow”>mail.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Ethereum-Bullish-or-Bearish-What-the-Futures-Market-Data-Says.jpeg" alt="ethereum Open Interest Dominance on CME” width=”1600″ height=”900″/>
The trend in the Open Interest dominance of the CME group in the btc and eth calendar futures market | Source: x.com/glassnode/status/1813882560466042956/photo/1" target="_blank" rel="noopener nofollow">Glassnode on x
The chart above shows CME Group's open interest domain data. Open interest refers to the number of contracts currently open in the calendar futures market.
It would appear that CME Group now holds 83% and 65% of the open interest on the bitcoin and ethereum calendars, respectively.
eth Price
ethereum’s recovery has been stagnant for the past few days as the asset’s price is still trading around the $3,400 mark.
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Looks like the price of the coin has been moving sideways since its surge | Source: ETHUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, Glassnode.com, chart by TradingView.com
