Ethereum: 4 key factors for reduced selling pressure and future trend analysis

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Recently, the performance of Ethereum (ETH) in the futures market has brought signs of cooling to the market, suggesting that its price may rebound. ETH has risen by 1.67% and 1.74% on the daily and weekly charts, respectively, showing an upward trend. With the easing of selling pressure, the dynamics of the futures market indicate a potential recovery for Ethereum.

Futures Market Analysis: Healthy Market, Buying Dominance

Ethereum has been trading between $3,500 and $3,300 in the past two weeks, lacking sustained upward momentum. CryptoQuant analyst Burak Kesmeci pointed out four key futures market indicators to analyze the impact of these signals on ETH prices:

Funding Rate: ETH's funding rate is 0.01, indicating that the market is healthy and bulls are able to support the spot market.

Taker buy-sell ratio: ETH's buy-sell ratio is 0.57, showing that the derivatives market is dominated by buying sentiment, driving demand and being crucial to price increases.

Open interest: Open interest rose by 3.18% in 24 hours, although this is a short-term fluctuation, suggesting that the derivatives market has heated up slightly.

Liquidation: Short positions were actively liquidated, with the liquidation amount reaching $6 million in the past 24 hours, reducing the selling pressure in the market.

These indicators show that the selling pressure in the ETH futures market has eased significantly, and the activity of longs seems to be strengthening.

Synergy between the spot market and the futures market

Despite the bullish outlook for the futures market, the performance of the spot market is also very important. ETH's exchange supply ratio has dropped to 0.14, showing that investors are withdrawing assets from exchanges, indicating the market's confidence in future price increases. At the same time, the net inflow of large households remains positive, further increasing the bullish sentiment in the market.

Summary: Potential for ETH Recovery

Positive signals from derivatives and spot markets suggest that Ethereum's price is expected to recover. If the current market sentiment persists, ETH may break out of the consolidation range and climb back to the $3,700 level. However, if the short force rebounds, the ETH price may fall to $3,200.

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