Why is the selling pressure on Ethereum declining?

Ethereum (ETH) has recently seen a significant decrease in selling pressure, indicating a potential market recovery. Here are the four main reasons identified that explain this trend, and what it could mean for the future of Ethereum crypto.

Cryptocurrencies: Four reasons for the imminent rise of Ethereum?

Cryptocurrency Ethereum has noticed a significant decrease in selling pressure, heralding a potential Ethereum explosion. According to a recent analysis, here are the four main reasons behind this trend.

Ethereum’s funding ratio was 0.01, indicating a healthy market with long positions supporting the cash market. A positive funding rate means that cryptocurrency traders are willing to pay to maintain their long positions, which is a sign of confidence in future price increases.

• Favorable ratio between buyer and seller

The buyer-to-seller ratio for Ethereum was 0.57, indicating that buying sentiment dominates the derivatives market. When buyers become active, it increases buying pressure, which is necessary for prices to push up due to demand. This positive ratio is a key indicator that cryptocurrency investor confidence is on the rise Ethereum prices.

• Increase in open interest

Open interest in Ethereum rose by 3.18% in 24 hours, indicating a slight, albeit short-lived, rally in the derivatives market. The increase in open interest indicates that new contracts are being created, which could be a sign of new investors entering the cryptocurrency market, willing to bet on rising prices.

• Filter short positions

A large amount of short positions were liquidated, with $6 million liquidated during the last day. Liquidation of short positions reduces selling pressure in financial derivatives markets, eliminating the effect of an increase in open contracts. This means that short sellers, who are betting that prices will fall, are forced to buy back their positions, which could lead to a rise in cryptocurrency prices.

Future outlook

Although Ethereum’s performance in derivatives markets offers a promising outlook, it is necessary to check what the cash market is saying. The exchange supply ratio has declined over the past week, suggesting that cryptocurrency investors are holding their assets outside of exchanges, reflecting accumulation in anticipation of better prices. Moreover, net inflow from major shareholders remained positive, indicating continued confidence from major investors.

In short, a decline in selling pressure on Ethereum, combined with positive market indicators, could indicate a potential recovery. However, it is crucial that they are monitored Future developments To confirm this crypto trend.

Disclaimer

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.