Analyzing key metrics from the perpetual markets can provide valuable insights into potential future price movements. One such metric is the Taker Buy/Sell Ratio, which measures the proportion of market buy orders to market sell orders across the futures market. As market orders directly influence price action, this ratio can help anticipate shifts in sentiment and market direction.
Over the past few months, the 30-day moving average of the Taker Buy/Sell Ratio for Ethereum has consistently remained below 1. This suggests that sellers have been more aggressive than buyers, leading to increased market supply. However, the ratio has recently rebounded alongside a price surge from the $2.1K support zone, signaling a potential shift in market sentiment. As the ratio approaches the critical threshold of 1, the selling pressure in the futures market may be waning. Should this upward trend in the Taker Buy/Sell Ratio persist, it could signify a squeeze in aggressive selling, setting the stage for a market rally.
Written by ShayanBTC
