Ethereum Eyes $4,000 Comeback Fueled By Bullish Buying Spree

Ethereum (ETH), the world’s second-largest cryptocurrency, has been on a tear lately. After months of hovering, the coin has seen a surge in price, and analysts are now pointing to signs within the derivatives market suggesting this rally might have legs.

Taker Buy Sell Ratio Nears Equilibrium

One key indicator is the Taker Buy Sell Ratio, a metric that tracks the volume of buy orders compared to sell orders in ETH’s perpetual futures market. Traditionally, a ratio below 1 suggests more sell orders are flooding the market, potentially driving the price down. Conversely, a ratio above 1 indicates a dominance of buy orders, often a bullish signal.

SEC Okays Spot Ethereum ETFs, Market Expectations Reversed

The news that the US SEC has approved spot Ethereum ETFs has caused a sharp reversal in the market’s expectations for Ethereum ETF rejection this week, and as a result, the price of Ethereum (ETH) is moving erratically in late Thursday activity.
As of right now, Ethereum was trading for about $3,770. That is both considerably higher than the previous session low of 3,500$ and sharply lower than the previous session highs of over 4,000$.

Futures Open Interest Reaches New Highs

Another data point bolstering the bullish case comes from the Futures Open Interest metric. This metric tracks the total amount of outstanding futures contracts that haven’t been closed or settled. A rising Open Interest suggests more traders are entering new positions, potentially anticipating a price increase.
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