Pay Attention to This Indicator in Ethereum: Selling Pressure May Reduce!
According to an Ethereum analyst, data in the derivatives market shows that the selling pressure on ETH may decrease.
Transactions with perpetual futures contracts have been influencing the spot market for years. One of the key indicators in the market is the seven-day moving average of the taker bid/ask ratio, which shows whether buyers or sellers are dominant.
This ratio has been below 1 over the past few months, indicating that sellers are becoming more active in the Ethereum futures market. However, the ratio began to increase and approach 1 as the ETH price increased.
“This upward trend in the taker bid/ask ratio indicates that there may be a change in market dynamics,” said a CryptoQuant analyst.
The analyst said, “If this rate continues to increase, it may mean that the selling pressure will decrease.” As a result, if there is enough demand in the spot market, the current rise in the price can be sustained,” he commented.