Key Points
- Ethereum’s Taker Buy Sell Ratio has been under 1 since June 5, indicating more sell volume in its Futures market.
- Despite a bearish trend, Ethereum’s Funding Rate remains positive, suggesting demand for long positions.
Ethereum’s Sell Volume Exceeds Buy Volume
Since June 5, Ethereum’s Taker Buy Sell Ratio has been less than 1, indicating more sell volume in its Futures market than buy volume. This ratio, calculated using a seven-day simple moving average (SMA), has been on a downward trajectory, according to data from CryptoQuant.
A Taker Buy Sell Ratio less than 1 suggests that the Futures market has seen more sell orders than buy orders. CryptoQuant analyst ShayanBTC noted that most futures traders have been selling Ethereum aggressively, either for speculative purposes or to realize profits. This substantial drop in the metric is a bearish signal, implying that the current downward trend may continue if this trend persists.
ETH Funding Rate Remains Positive Despite Bearish Trend
The decline in Ethereum’s Futures Open Interest since June 5th has confirmed the bearish sentiment. According to Coinglass data, the Futures Open Interest was $16.37 billion at press time, a 2% drop since then. This drop suggests a shift in sentiment from bullish to bearish, with some Futures traders closing their positions without opening new ones.
Despite this bearish bias, the majority of Ethereum’s Futures traders have opened positions anticipating continued price growth. This is evidenced by the coin’s Funding Rate, which has only returned positive values since May 3rd, according to Coinglass data. A positive Funding Rate indicates a significant demand for long positions.
