Bitcoin, Ethereum and altcoins fell before the US inflation data and FED interest rate decision to be announced tomorrow.
At this point, as ETH goes up to $ 3,530, the selling pressure on the ETH price may increase further.
Stating that Ethereum futures investors are selling aggressively, CryptoQuant analyst shared a chart showing the 7-day moving average of the Buyer Buying Selling Ratio, which measures the movements of buyers against sellers.
Stating that according to this graph, a value above one indicates buyer dominance, and a value below one indicates aggressive selling, the analyst said that the value is currently below one, meaning that sellers dominate the market.
Stating that this chart shows that most futures investors sell Ethereum aggressively for speculative purposes or to make a profit, the analyst stated that this is a bearish signal for ETH.
“As the price of Ethereum attempts to surpass $4,000, investors should monitor the behavior of futures market participants.
The chart shows the 7-day moving average of the Buyers Bid Ask Ratio, which evaluates their relative aggressiveness towards sellers.
A value above one indicates buyer dominance, while a value below one indicates aggressive selling.
As seen in the chart, the rate could not rise above one and has fallen rapidly in recent days.
This trend shows that the majority of futures traders are aggressively selling Ethereum for speculative purposes or to make a profit.
“This significant decline in the metric is a bearish signal for ETH, indicating that the current downward reversal could continue if this trend continues.”
$ETH's plummet might persist in the short term
“This trend suggests that the majority of futures traders have been selling #Ethereum aggressively, either for speculative purposes or to realize profits.” – By @Greatest_Trader
Link 👇https://t.co/yz9DVphQ8l
— CryptoQuant.com (@cryptoquant_com) June 11, 2024
*This is not investment advice.
