- ETH has turned green on the daily and weekly charts, rising 1.67% and 1.74% respectively.
- Ethereum’s Futures Signaled a Possible Recovery as Selling Pressure Eased.
Ethereum [ETH] has struggled to maintain upward momentum over the past two weeks. During this period, the altcoin has traded within a consolidation range of between $3500 and $3300.
These prevailing market conditions have key stakeholders wondering what could drive ETH toward recovery.
To this extent, CryptoQuant analyst Burak Kesmeci pointed out four key Futures market metrics and what they suggest about Ethereum’s trajectory.
Futures markets rate Ethereum
In his analysis states Kesmeci mentioned four crucial Futures market metrics including funding rate, taker buy-sell ratio, open interest and liquidation.
Source: CryptoQuant
Ethereum’s funding rate stood at 0.01 at the time of writing, suggesting the market was healthy, with longs able to support ETH’s spot market.
Second, Ethereum’s Taker Buy Sell ratio was 0.57, indicating that buying sentiment dominated the derivatives market.
When buyers are active, it causes higher purchasing pressure, which is critical to driving higher prices through demand.
Moreover, Ethereum Open Interest is up 3.18% in 24 hours, indicating a slight warming in derivatives, albeit short-lived.
Finally, Ethereum’s liquidation showed a significant number of short positions being actively liquidated, worth $6 million in the last day to the time of writing.
This reduces selling pressure in the derivatives markets, reversing the impact of rising open rates.
Thus, the selling pressure on the ETH Futures markets had subsided significantly. But while Open Interest can show that the market is on the rise, the bulls have entered the market and appear to be taking it a step further.
Can futures give ETH a boost towards recovery?
While Ethereum’s performance in the derivatives markets offered promising prospects, it is essential to check what its performance in the spot market says.
To start, while the exchange supply ratio is not exclusive to spot markets, exchange supply ratios correlate with spot market activity.
Source: Cryptoquant
As such, ETH’s supply ratio has fallen over the past week to 0.14 at the time of writing. Such a decline indicates that investors are keeping their assets outside the stock market.
This market behavior reflects accumulation and hoarding in anticipation of better prices.
Source: IntoTheBlock
This positive sentiment also prevailed among major investors last week. As such, major corporate net flows have remained positive throughout the week.
This indicated greater capital inflows from whales.
Source: Santiment
Finally, amid the accumulation, long-term holders of ETH have turned bullish and confident in the altcoin’s prospects as their profit margins have exceeded those of short-term holders.
In short, the bulls increased in derivatives and in the spot market. When investor confidence in these two rises, Ethereum could see a significant recovery on its price charts.
Read Ethereum’s [ETH] Price forecast 2025–2026
With positive sentiments rising in the market, ETH could see more gains on its price charts. If these conditions persist, Ethereum could break out of the consolidation range and regain the $3700 level.
However, if the bears outweigh the bulls undermining these sentiments, ETH will fall to $3200.
