Key Points
- Ethereum’s Taker Buy Sell Ratio is showing signs of increased buying pressure in the futures market.
- Ethereum’s futures open interest has reached a new all-time high of $16 billion.
Ethereum’s Taker Buy Sell Ratio is showing signs of increased buying pressure.
This ratio is a measure of the balance between buying and selling volumes in Ethereum’s futures market.
The Taker Buy Sell Ratio
When the Taker Buy Sell Ratio rallies towards 1 or exceeds it, it indicates a higher buy volume than sell volume in the market.
On the other hand, a ratio below 1 signals more selling than buying.
At the time of writing, Ethereum’s ratio was 0.99, up by 3% since the start of the month.
Previously, this ratio had been on a downward trend.
However, according to a CryptoQuant analyst, the ratio reversed its course with the recent rally and has been climbing alongside Ethereum’s price.
Futures Market Indicators
Analysing Ethereum’s futures market, there are indications of a continued price rally.
Coinglass’ data shows that Ethereum’s Futures Open Interest has reached a new all-time high of $16 billion.
Futures Open Interest is a measure of the total number of outstanding futures contracts or positions that have not been settled.
When this figure rises, it suggests that more market participants are opening new positions.
In addition, Ethereum’s Funding Rate has remained positive.
This rate is used in perpetual futures contracts to keep the contract price close to the spot price.
When Ethereum’s Futures Funding Rates are positive, it signifies a strong demand for long positions, which is a bullish signal for the altcoin’s price growth.
