According to Cointelegraph: In a recent report by verified CryptoQuant author Burak Kesmeci, he points out two significant on-chain indicators: the Taker Buy Sell ratio and Open Interest (OI). These metrics suggest that Ether might be poised for a rebound in the near term.
Ether Price: Currently trading at $2,679, down 23.57% since July 23.
On-Chain Metrics: Taker Buy Sell Ratio and Open Interest suggest a potential end to Ether's correction.
Positive Taker Buy Sell Ratio: Indicates buyers may be regaining strength.
Ether (ETH) has recently dropped to around $2,679, marking a 13% decline from the critical $3,000 level since early August. However, according to on-chain metrics, this lengthy correction may be nearing its end.
Taker Buy Sell Ratio Turns Positive
The Taker Buy Sell ratio, which calculates the ratio of buyers to sellers across major cryptocurrency exchanges, has turned positive, indicating a potential shift in market sentiment. CoinGlass data further supports this, showing that while the 24-hour period slightly favored short-sellers, the most recent 12-hour data up to the time of publication shows 50.37% of positions being long.
Rising Open Interest (OI)
On August 19, Ether’s OI—representing the total number of outstanding options contracts—reached $10.69 billion, a 10% increase from the previous day. Kesmeci argues that this rise in OI, coupled with the positive taker-buy ratio, suggests that buyers are beginning to regain strength.
Kesmeci notes that for Ether to experience significant upward movement, leveraged traders will need to return, as they typically gain confidence when asset prices spike. Historical data shows that when Ether reached its year-to-date high of $4,066 on March 12, OI was at $13.67 billion. When Ether retested similar levels in June at $3,800, OI surged above $15 billion, signaling a likely market correction, which indeed followed.
Impact of Spot Ether ETFs
Despite the anticipation surrounding the launch of the first spot Ether exchange-traded funds (ETFs) on July 23, the debut has not significantly bolstered Ether’s price. The ETFs have seen a cumulative $434 million in net outflows since their launch, contributing to the selling pressure and subsequent price decline.
For context, when the first spot Bitcoin ETFs were launched, Bitcoin's price initially fell by about 15% before recovering to its previous levels. The Ether market, however, has yet to see a similar recovery.
As Ether approaches the $2.6K mark, market analysts and traders are closely monitoring these on-chain signals for indications of a potential reversal in the ongoing correction.
