Leading altcoin Ethereum (ETH) has seen a significant surge in the past week. Its value has surged almost double digits and is currently trading at $3,672.
However, hopes of a continued rally towards the $4,000 mark may face headwinds as a significant increase in sell orders has been observed in the coin’s futures market.
Ethereum sellers determine price trends:
CryptoQuant data shows a rise in sell orders in the ETH futures market, with the buy-to-sell ratio remaining below one since January 4. Currently, the ratio stands at 0.84.
This metric tracks the ratio of buy orders to sell orders in the futures market. A ratio below one indicates more sell orders are being executed, reflecting a shift in market sentiment from bullish to bearish. Increased selling pressure could weigh on the price of ETH, potentially erasing some of its recent gains.
Furthermore, the negative sentiment weighted for the coin confirms the possibility of a price correction. For context, ETH’s weighted sentiment has been back in negative territory mainly since December 17. At press time, it stands at -0.67.
This metric measures the general sentiment expressed towards a particular asset, taking into account both the polarity of the sentiment (positive or negative) and the volume of mentions on social media. As with ETH, a negative-weighted sentiment indicates that the prevailing sentiment towards the asset is mainly negative, indicating the potential for bearish market conditions.
ETH Price Prediction: $4000 Target Looks Far Away!!!
Ethereum is currently trading at $3,654, slightly above the support formed at $3,332. If the sell-off in the futures market intensifies, this support level will be tested. A breakout of this area could take Ethereum price down to $2,509, well away from the highly sought-after $4,000 mark.
On the other hand, if the selling stops and buying pressure increases, it could push Ethereum price above the $4,000 mark and towards a four-year high of $4,783.