Markets
Analyst projects steeper declines for Ethereum if futures market trend does not improve
Like Ethereum (ETH) retests $3,500 low amid market-wide decline, CryptoQuant analyst ShayanBTC suggests the asset could face further declines if current trends in the futures market do not improve.
Recent market turmoil has driven several altcoins to their lowest levels in weeks. Notably, Ethereum recently fell to the lower spectrum of the $3,500 limit for the first time in over three weeks, retesting the $3,503 low earlier today.
Amid bearish conditions, investor anxiety has returned. Futures market data indicates that market participants have turned bearish, betting on steeper declines and continued turbulence.
In a recent analysis, ShayanBTC drew attention to the Taker Buy Sell Ratio, which measures the aggressiveness of buyers versus sellers in the futures market. An index above one indicates that buyers are dominating, while an index below one suggests that sellers are more aggressive.
According to market data, the seven-day moving average of this ratio has been falling recently, failing to exceed one. This downward trend indicates that most futures traders are aggressively selling Ethereum.
Such behavior may be motivated by speculation or profit-making in light of current market conditions. ShayanBTC argues that the significant decline in this index serves as a bearish signal, suggesting that the downward trend in Ethereum’s price could continue if this selling pressure persists.
ETH Price – June 11 | Source: Negotiation Vision
However, despite the derivatives volume rising 131% to a record $24.8 billion, Ethereum’s long/short ratio, which measures the ratio between long (bullish) and short (bearish) positions, witnessed a massive drop. This index fell to 0.8921, suggesting a dominance of short positions, according to Coinglass data.
Ethereum is currently trading at $3,537 after a slight recovery from the low price of $3,503 recorded earlier this morning. Despite 3.58% to tear down Today, the crypto asset trades above the 200-day EMA ($2,945) and the 50-day EMA ($3,381).