 ▲ Ethereum (ETH) |
As Ethereum (ETH) continues its corrective phase, early signs hinting at a potential trend reversal have emerged as bearish pressure in the futures market eases. With derivatives flows on Binance beginning to shift, the possibility of a change in market structure is gaining traction. Improving technical indicators are fueling expectations of a price rebound.
According to NewsBTC, CryptoQuant contributor Darkfost analyzed that the Taker Buy Sell Ratio no longer reflects aggressive selling dominance. This metric is used to measure the directional dominance of market orders executed in futures contracts. A value above 1 indicates stronger buying pressure, while a value below 1 suggests that sellers are leading the market.
During Ethereum’s sharp rally toward its all-time high, increased selling pressure in the futures market kept the ratio below 1. At that time, Binance’s monthly Taker Buy Sell Ratio dropped to 0.95, while the weekly average fell to 0.92. This suggests that despite rising prices, aggressive selling centered in the futures market restrained the overall upward momentum.
A notable shift now is that futures market conditions are improving even before a clear reversal appears on the spot chart. Darkfost explained that over the past two weeks, Binance’s weekly ratio has moved sideways around the neutral level of 1. Despite prices remaining in a corrective range, the fading of aggressive selling in the futures market is interpreted as a positive technical signal.
Market data also briefly showed the ratio exceeding 1.12, indicating strong inflows of market buy orders at certain points. The monthly average has also recovered to 0.99, approaching neutral territory. While buyers have not fully taken control, it is encouraging that the market is moving away from the prolonged phase of selling dominance.
Darkfost noted that additional confirmation is needed to validate a full trend reversal, but described the current indicator trajectory as highly constructive. If the ratio stabilizes above 1, it would signal that buyers have regained control of the market, potentially serving as a key driver supporting Ethereum’s price in the short to medium term. Given that the futures market plays a central role in price discovery, changes in order flow could become a significant precursor to a price rebound.
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