Ethereum’s price at the moment stands at $2,732 after a decline of 16.15% over the past month, favoring the bears in the market.
Nevertheless, there are initial indications of a potential reversal, with ETH concluding the previous week with a 2.08% increase.
Increased buying volume in the derivatives market and the technical pattern displayed on the chart might significantly impact ETH’s ability to reach a new market peak.
Rising Buying Volume Reaches Peak Levels
As of the current moment, the Taker Buy Sell Ratio, which signifies market sentiment by showing whether buying pressure (above 1) or selling pressure (below 1) dominates, reflects that buyers are leading the way.
Currently, this ratio has hit its highest point this year, standing at 1.13, showcasing the aggressive nature of buyers as they accumulate more of the asset.
The Funding Rate, another crucial metric in assessing sentiment in the derivatives market, verifies this trend, currently showing 0.0050%, indicating prevalent buying activity.
The Funding Rate indicates which side of the market is paying the premium. When positive, as seen with ETH currently, it implies that longs are paying the premium to uphold their positions, reflecting increasing confidence in the asset.
This growing confidence might lead to a substantial price surge for ETH, potentially propelling it to $3,440 as a bullish pattern emerges on the chart.
Anticipating a Major Price Rally for ETH?
Technically, ETH is nearing the upper resistance level of the symmetrical channel within which it is trading. This pattern forms when support and resistance levels merge, indicating a phase of market accumulation.
A breach of this level typically initiates a series of consecutive rallies. However, if ETH surpasses this resistance, it will encounter another significant barrier at $2,798.34, potentially briefly halting the upsurge.
If the buying momentum remains strong, ETH could break past this resistance and trade notably higher, reaching $3,442, marking a 23.06% surge.
Alternatively, ETH might continue consolidating within the symmetrical triangle, considering another breakout attempt later.
Spike in Liquidity Flow
According to Artemis, Chain Netflow, a metric used to evaluate liquidity inflows and outflows in the ecosystem, shows a significant increase in Ethereum liquidity.
Over the last week, the total Netflow amounts to $100.7 million, indicating more inflows than outflows during this timeframe.
One key observation from this trend is the prevailing bullish market sentiment, hinting that a substantial rally is inevitably approaching.