The second biggest cryptocurrency in the world, Ethereum (ETH), has lately been on a roller coaster. Following months of languishing, the coin’s price has surged; analysts are now pointing to indications in the derivatives market that this increase could have legs.
Taker Buy Sell Ratio Nears Equilibrium
The second biggest cryptocurrency in the world, Ethereum (ETH), has lately been on a roller coaster. Following months of languishing, the coin’s price has surged; analysts are now pointing to indications in the derivatives market that this increase could have legs.
SEC Okays Spot Ethereum ETFs, Market Expectations Reversed
The news that the US SEC has approved spot Ethereum ETFs has triggered a sudden reversal in the market’s predictions for Ethereum ETF rejection this week, and hence, the price of Ethereum (ETH) is fluctuating wildly in late Thursday activity.
Ethereum was trading as of right now for roughly $3,777. That is far lower than the prior session highs of over $4,000 and far higher than the low of $3,500.
BOOM!! APPROVED! There it is. The SEC just approved spot ETFs. What a turn of events. It’s really happening.
h/t
— James Seyffart (@JSeyff)
Leading crypto analytics tool CryptoQuant recently noted that, based on a 7-day simple moving average, ETH’s Taker Buy Sell Ratio is about ready to pass over its 1-center line. This suggests a drop in sell orders and maybe increasing purchasing pressure. This implies that the currency might soon recover the $4,000 pricing range.
Noted ShayanBTC, a pseudonymous analyst at CryptoQuant, this rising tendency in the Taker Buy Sell Ratio suggests a possible change in market dynamics. Should the ratio keep rising, it could indicate a decline in aggressive selling pressure, which would be favourable for ETH’s price ShayanBTC noted.
Futures Open Interest Reaches New Highs
The Futures Open Interest statistic adds still another data point supporting the optimistic view. This statistic counts all of the outstanding futures contracts unclosed or settled. An increasing Open Interest indicates that more traders are joining fresh positions maybe in expectation of a price rise.
Another crypto analytics tool, Coinglass claims, ETH’s Futures Open Interest has of $16 billion. This signals a rise in market involvement as more traders predict ETH’s future.
Interest has of $16 billion. This signifies a surge in market participation, with more traders betting on ETH’s future.
The all-time high OI points to notable rise in investor confidence. Growing institutional acceptance of ETH and the forthcoming Ethereum 2.0 update could be among the various reasons for this.
Featured image from Explorersweb, chart from TradingView