Analyst predicts increased Ethereum declines unless futures market trend reverses
As the price of Ethereum (ETH) falls to $3,500, CryptoQuant analyst ShayanBTC warns of potential further declines if the futures market trends do not improve.
The recent market volatility has led to many altcoins hitting their lowest levels in weeks. Ethereum, in particular, dropped to the lower end of the $3,500 range for the first time in over three weeks, reaching a low of $3,503 earlier today.
Investor sentiment has turned bearish as data from the futures market shows a shift towards more aggressive selling. ShayanBTC highlighted the Taker Buy Sell Ratio, which measures the balance of buyers and sellers in the futures market. A ratio above one indicates buyer dominance, while a ratio below one suggests more aggressive selling.
The seven-day moving average of this ratio has been declining, indicating a rise in aggressive selling of Ethereum in the futures market. This behavior could be driven by speculation or profit-taking, leading to a bearish signal for the asset’s price if selling pressure continues.
Despite a 131% increase in derivatives volume to a record $24.8 billion, Ethereum’s long/short ratio has plummeted to 0.8921, indicating a dominance of short positions. Ethereum is currently trading at $3,537, recovering slightly from its earlier low of $3,503. The asset remains above the 200-day EMA ($2,945) and the 50-day EMA ($3,381).
In conclusion, the market conditions suggest a potential continuation of the downward trend in Ethereum’s price if the selling pressure persists.
