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Ethereum: 4 Crucial Reasons Why Sell Pressure Dropped, and What Happens Now
As the cryptocurrency market continues to fluctuate, a glimmer of hope has emerged for Ethereum [ETH] investors. According to CryptoQuant analyst Burak Kesmeci, sell pressure in ETH Futures markets has eased significantly, leading many to wonder what this could mean for the altcoin’s price trajectory.
Firstly, the Funding Rate has dropped to 0.01, indicating that longs are now able to support the spot market. This implies that the market is in a healthy state, with buyers taking control and creating demand.
Secondly, the Taker Buy-Sell Ratio stands at an impressive 0.57, signaling a dominant buying sentiment in the derivatives market. A higher buying pressure can only spell positive news for ETH’s price prospects.
Additionally, Ethereum’s Open Interest has surged by a substantial 3.18% in just 24 hours, indicating a short-term heating up of the derivatives markets. This development could be an indication that buyers are stepping up their game and preparing for a potential turnaround.
Lastly, liquidation data reveals that an enormous $6 million worth of short positions have been unwound over the past day, drastically reducing sell pressure in the process.
These four crucial metrics collectively suggest that the tide may be turning in favor of Ethereum bulls. With buyer confidence rising across both spot and derivatives markets, investors are now cautiously optimistic about ETH’s prospects.
Moreover, the Exchange Supply Ratio has declined to 0.14 over the past week, indicating a significant reduction in supply on exchanges. This phenomenon is often an indication that investors are choosing to hold onto their assets rather than sell them off. As such, it appears that the accumulation phase is taking precedence over liquidation.
In fact, large holders have also turned bullish, with a net inflow of capital into Ethereum’s ecosystem. The trend has persisted throughout the week, signaling increased enthusiasm for the altcoin.
Source: ambcrypto.com
