ShayanMarkets2023-02-22

The Taker Buy/Sell Ratio metric indicates a dominant bearish sentiment in Ethereum market

Since 2018, the futures market has been essential in affecting Ethereum's price. Thus, examining the futures market sentiment would be helpful in gaining insight into short-term price movements. The Taker Buy Sell Ratio metric(with a 30-day SMA added) can be used to define the market’s sentiment. Utilizing this feature, we can identify whether buying or selling pressure is significant, with values above one indicating bullish and below 1 showing bearish sentiment. Simultaneously with the recent bullish trend of Ethereum, the metric was also spiking, indicating a bullish sentiment in the market. However, the price entered a consolidation stage, causing a significant decline in the metric below one. As a result, the metric dropped to a new multi-month low, implying a dominant bearish sentiment. The recent rally should be closely monitored in the weeks ahead to determine whether this was just another bull trap or a beginning of a new bull market, as sellers might dominate again.