While Ethereum currently sits at a crucial support region with significant potential demand, examining the futures market sentiment is vital for predicting its next movements. The chart highlights the Ethereum Open Interest metric and the 7-day moving average of the Taker Buy/Sell Ratio metric alongside the price.
As depicted in the chart, upon reaching the critical support level of $3.3K, the Open Interest metric has shown a slight uptick. This increase signals heightened futures market activity, likely driven by participants' interest in opening long positions. A similar trend is observed in the taker buy/sell ratio metric, which has surged sharply, nearing a value of 1. This development strongly suggests a potential rise in demand and increased buying activity in the perpetual markets, reinforcing the bullish scenario.
If this trend persists and both metrics continue to climb, a significant bullish rebound will become more probable.
Written by ShayanBTC