Ethereum bears grow more confident as futures market sees increased sell-off

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Ethereum's taker buy-sell ratio (30-day SMA) has plummeted to a yearly low, suggesting that the coin's futures market is plagued by an increase in sell orders.

showed. This indicated that the altcoin’s futures market has become rife with more sell orders than buy orders.The taker buy-sell ratio is a metric that measures the ratio between the buy volume and sell volume in an asset’s futures market. A value greater than 1 indicates more buy volume than sell volume, while a value less than 1 indicates more sell volume than buy volume.

With the context of recent market movements in mind, ETH’s price consolidation and the attendant decline in its open interest show that the alt’s holders have spent the past few months unwinding their large speculative positions as sentiment grows poorer. The fall in open interest can also be due to cyclical factors, such as summer doldrums. Since June, the general market has traded sideways, with very few periods of price jumps.However, while the daily count of open positions in ETH’s futures market has dwindled in the past few months, funding rates across leading cryptocurrency exchanges have been significantly positive.Apart from the severe decline experienced on 12 March, ETH’s funding rates have been positive for most of the year.

 

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