TLDR:

Ethereum derivatives power index climbed to +0.088 on January 16, matching October levels when ETH traded above $4,600
Binance recorded -$440M in net taker volume over two days, signaling potential institutional distribution patterns
The October parallel proved bearish as ETH dropped nearly 40% following similar derivative momentum readings
Rising momentum combined with negative net volume creates rare configuration historically preceding major price moves

 

Ethereum’s derivatives market shows diverging signals as momentum indicators climb while Binance registers heavy negative net taker volume. 

The composite derivatives power index recorded a 30-day change of +0.088 on January 16, matching levels last seen in early October when ETH traded above $4,600. 

Market participants now face mounting selling pressure despite improving technical momentum across futures platforms.

Derivatives Momentum Reaches Critical October Levels

Binance’s Ethereum futures power index has surged to levels not observed since October 7, when the asset commanded prices exceeding $4,600. 

The 30-day change metric, which combines price action with derivatives momentum and liquidity factors, hit +0.088 points this week. 

This composite indicator measures trend strength beyond simple price movements by incorporating open interest shifts and volume patterns.

The October parallel carries particular weight for market analysts tracking historical patterns. When the index previously reached 0.083 points in early fall, Ethereum entered a steep correction phase. 

The subsequent selloff erased nearly 40% of the asset’s value over the following weeks as buyers exhausted momentum.

Current readings suggest derivatives traders have rebuilt positioning strength despite recent price volatility. 

However, the index alone does not confirm directional bias. Additional metrics reveal growing tension between bullish momentum and bearish execution flows across major exchanges.

Heavy Selling Pressure Emerges on Binance Platform

Net taker volume on Binance turned sharply negative as January trading progressed, signaling potential distribution by large holders. 

On January 15, the platform recorded -257 million USD in net taker volume through market sell orders. The following day maintained negative territory at -183 million USD, extending the pattern of aggressive selling.

These negative readings typically indicate institutional participants opening short positions or closing profitable long exposure. 

Large investors often use market orders to execute sizable trades quickly, leaving a clear footprint in net taker data. 

The sustained selling over consecutive sessions suggests coordinated activity rather than random liquidations.

Open interest changes remain relatively stable despite the selling pressure, indicating new shorts may be offsetting closed longs. 

This dynamic creates a precarious balance where any catalyst could trigger rapid moves in either direction. 

Traders monitoring these flows watch for acceleration or reversal signals that might confirm the dominant trend. 

The combination of rising derivatives power and negative net volume presents a rare configuration that historically precedes major price moves.

 

The post Ethereum Derivatives Momentum Surges While Binance Records Heavy Selling Pressure appeared first on Blockonomi.

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Filed under: Bitcoin - @ January 17, 2026 11:37 pm