Key Points
- Ethereum’s Futures indicate a potential recovery as selling pressure decreases.
- Positive market sentiment could push Ethereum out of its recent consolidation range.
Ethereum (ETH) has been experiencing a green phase in its daily and weekly charts, with increases of 1.67% and 1.74% respectively.
The cryptocurrency has faced challenges in maintaining an upward trend over the past fortnight, with its value oscillating between $3500 and $3300.
Future Market Metrics and Ethereum
CryptoQuant analyst Burak Kesmeci has highlighted four key metrics from the Futures market that could hint at Ethereum’s upcoming trajectory.
These metrics include the Funding Rate, Taker Buy-Sell Ratio, Open Interest, and liquidation.
Ethereum’s Funding Rate was at 0.01 at the time of writing, indicating a healthy market with longs supporting Ethereum’s spot market.
The Ethereum Taker Buy Sell ratio was at 0.57, showing a dominance of buying sentiment in the derivatives market. This could lead to higher buying pressure, which is essential for driving up prices.
Open Interest in Ethereum has risen by 3.18% in the past 24 hours, indicating a short-term increase in activity in the derivatives market.
Moreover, a significant amount of short positions were being actively liquidated, with $6 million over the past day, which decreases selling pressure in the derivatives market.
Ethereum’s Recovery Prospects
While these metrics from the derivatives market provide a positive outlook, it is also important to consider the performance on the spot market.
The exchange supply ratio, although not exclusive to spot markets, is related to spot market activity.
Ethereum’s exchange supply ratio has decreased over the past week to 0.14. This implies that investors are keeping their assets off exchanges, which could be a sign of accumulation and hoarding in anticipation of better prices.
Large holders have also shown positive sentiment over the past week, with the large holder’s netflow remaining positive, indicating more capital inflow from whales.
Long-term holders have turned bullish and are confident about Ethereum’s future, as their profit margins outweigh those of short-term holders.
With rising positive sentiment in the market, Ethereum could see more gains. If these conditions persist, Ethereum could break out of its current consolidation range and reach $3700 levels.
However, if bearish sentiment prevails, Ethereum could drop to $3200.
