CryptoQuant analyst has highlighted the heightened risk in the short-term price of Ethereum, urging investors to pay attention. The data shows that Ethereum futures investors are engaging in aggressive selling, putting pressure on the price of ETH. As ETH nears $3,530, the selling pressure is expected to intensify.
The 7-day moving average of the Buyer Buying Selling Ratio indicates that sellers currently dominate the market, with a value below one signifying aggressive selling. This trend suggests that most futures investors are selling Ethereum aggressively for speculative reasons or to turn a profit, creating a bearish signal for ETH.
As Ethereum aims to break the $4,000 mark, it is crucial for investors to monitor the behavior of futures market participants. The Buyers Bid Ask Ratio further confirms the dominance of sellers in the market, with the rate unable to rise above one and falling rapidly in recent days. This trend indicates that a majority of futures traders are aggressively selling Ethereum, potentially leading to a continued downward trend in the price of ETH.
The downward movement in ETH’s price may persist in the short term, as highlighted by the data. Investors are advised to keep a close eye on market dynamics and trends to make informed decisions. Remember, this is not investment advice. To explore investment opportunities in over 300 cryptocurrencies, consider registering with Binance exchange with a 20% commission discount. Stay updated with exclusive news, analytics, and on-chain data by following our Telegram and Twitter accounts.
