The post Ethereum Futures Indicate Potential Market Recovery Despite Recent Challenges appeared on BitcoinEthereumNews.com.

Ethereum’s Futures markets indicate a market cooldown, raising hopes for a potential recovery in ETH prices. With ETH recently turning green on both daily and weekly charts, there is growing optimism among investors as selling pressure begins to ease. As noted by CryptoQuant analyst Burak Kesmeci, the easing of selling pressure and favorable Futures indicators may signal a shifting tide for Ethereum. Ethereum’s Futures markets signal a cooling period, suggesting an easing of selling pressure and potential recovery in ETH’s price trends. Futures markets assess Ethereum As Ethereum navigates its current market conditions, Futures market metrics offer critical insights. Analyst Burak Kesmeci examined four key indicators including Funding Rate, Taker Buy-Sell Ratio, Open Interest, and liquidation activity. Source: CryptoQuant The Funding Rate for Ethereum stood at 0.01 at press time, indicating a stable market where long positions support ETH’s spot market. In addition, the Taker Buy-Sell Ratio measured at 0.57 highlights a predominance of buying sentiment in derivatives, an essential factor for potential price increases driven by demand. Moreover, Ethereum’s Open Interest grew by 3.18% within a single day, hinting at heightened activity in the derivatives market, albeit in the short term. Importantly, the recent liquidation data reflected active short positions being liquidated, totaling around $6 million over the previous day, which alleviates selling pressure and enhances bullish positioning. Therefore, while the Futures markets show slight warming, key stakeholders noted a marked reduction in sell pressure, painting a picture of diminished bearish sentiment. Could Futures boost ETH toward recovery? Despite positive indicators from the derivatives market, it is essential to evaluate performance in the spot market to gain a complete view. The exchange supply ratio, which correlates with spot market activity, has been a telling sign. Source: CryptoQuant The latest figures show that the ETH exchange supply ratio has decreased…

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Filed under: News - @ December 29, 2024 9:10 pm