- Ethereums Taker Buy Sell Ratio has remained below 1 since June 5.
- This means that there is more selling volume than buying volume in the futures market.
Ethereums [ETH] The Taker Buy Sell Ratio, as assessed by a seven-day simple moving average (SMA), has been on a downward trend since June 5, data from CryptoQuant has shown.
According to the on-chain data provider, the metric has since returned values less than one. At the time of writing, ETH’s Taker Buy Sell Ratio was 0.96.
Source: CryptoQuant
An asset’s Taker Buy Sell Ratio measures the ratio between buying and selling volume in the futures market. A value greater than 1 indicates more buying volume, while a value less than 1 indicates more selling volume.
When the value of this measure falls in this way, it suggests that the futures market for the asset in question has seen more sell orders than buy orders.
In a recent one report, pseudonymous CryptoQuant analyst ShayanBTC commented on the impact of this on the price of ETH. According to ShayanBTC it is
“This trend suggests that most futures traders have been selling Ethereum aggressively, either for speculative purposes or to make a profit. This significant decline in the measure is a bearish signal, indicating that the current downward retracement could continue if this trend continues.”
ETH funding rate remains positive
The brief drop in ETH Futures Open Interest since June 5 confirmed the above view.
At the time of writing, ETH Futures Open Interest was $16.37 billion, having since fallen 2%, according to Mint glass facts.
The coin’s Futures Open Interest measures the total number of outstanding Futures contracts or positions that have not yet been closed or settled.
When the price falls in this way, it indicates that some futures traders are closing their positions without opening new ones. This is often seen as a shift in sentiment from bullish to bearish.
Read Ethereum’s [ETH] Price forecast 2024-25
However, despite the bearish tilt of some market participants towards the coin, the majority of futures traders in ETH have opened positions in favor of continued price growth.
This is based on the values of the coin’s Funding Rate, which has only returned positive values since May 3, according to Coinglass data.
Source: Coinglass
Financing rates are used in perpetual futures contracts to ensure that the contract price remains close to the spot price. When it is positive, it indicates significant demand for long positions.