Ethereum Bulls Charge Back: Derivatives Volume Surges, Price Eyes New High
1min read Ethereum's recent price decline has sparked interest in the potential for a bullish reversal, with buying volume in the derivatives market surging to its highest point of the year. The current price of Ethereum (ETH) stands at $2,732, following a month-long decline of 16.15%, which has favored bearish sentiment. However, early signs of a potential market turnaround are emerging, as ETH closed the past week with a 2.08% gain.
The surge in buying volume in the derivatives market and the technical pattern on the chart could play a significant role in ETH establishing a new market high. The Taker Buy Sell Ratio, a metric used to determine market sentiment, shows that buyers are in control, with a reading of 1.13, indicating that buyers in the market are more aggressive as they acquire more of the asset. This trend is further confirmed by the Funding Rate, which currently reads 0.0050%, suggesting that longs are paying the premium to maintain their positions, reflecting growing confidence in the asset.
On the chart, ETH is approaching the upper resistance level of the symmetrical channel it is trading in. If the price breaches this level, it typically marks the beginning of a series of successive rallies. However, if ETH breaks through this resistance level, it will encounter another key resistance at $2,798.34, which could temporarily slow the rally. If buying momentum remains strong, ETH could surpass this resistance level and trade significantly higher, reaching $3,442—a 23.06% rally.
According to Artemis, Chain Netflow—a metric used to assess liquidity inflows and outflows within the ecosystem—indicates a massive surge in Ethereum liquidity. Over the past seven days, total Netflow stands at $100.7 million, meaning more inflows than outflows during this period. A key takeaway from this trend is that market sentiment remains decidedly bullish, making a major rally only a matter of time.
