The Binance Buy/Sell Ratio hints that the derivatives position could be shifting.
The following is a summary of the information that you will find on this website:
- After a steep monthly drop, the Ethereum price is now nearing its lower weekly end.
- The Binance Taker Sell/Buy Ratio is now neutral, after several weeks of pressure from the sell-side.
- To change the downtrend, it is necessary to move beyond $2200.
EthereumETHAt the time of publication,, a trader, is currently trading at $1947, a decrease of 4% over the previous 24 hours. The price is near the lower end of its range from $1,815.54 up to $2,099.16. ETH is down 35% in the past month and still about 60% off its all-time August high of $4946.
The daily trading volume was $22.5 billion, a 25% decrease from the previous session. As the market continues to drift sideways, traders are becoming more conservative.
The early signs of improvement for the binance takers’ buy/sell ratio
28 Feb. report Darkfost, a CryptoQuant Contributor, focused on Binance’s Ethereum Taker Buy/Sell ratio. This metric measures whether aggressive futures order are predominantly placed by sellers or buyers.
If the ratio is above 1, then market purchases will outweigh market sales. It is harder for sellers to push when the ratio stays below 1.
The ratio was below the equilibrium point during Ethereum’s surge to previous highs. Monthly reading dropped from 0.95 to just 0.92, and the weekly average also fell. the same time, prices began to move in a cyclical manner. Consistent selling of futures weighed in on the decline.
The futures market, which has an annual volume in excess of $65 billion and a flow rate that is significant to the price-finding process, can have a major impact on prices. In this market, heavy selling pressure can often lead to spot weakness.
In the last two weeks the situation has begun to change. Weekly ratios have hovered around 1.0 and daily spikes over 1.12 are indicative of bursts in aggressive purchasing. The figure for the month has risen to 0.99.
ETH’s recent rebound has been less dramatic than the previous imbalance. The ratio must remain above 1, for an extended period of time, to show that the buyers have taken control over short-term positions. A shift of this kind can pave the way for a stabilization in price.
Ethereum Price Technical Analysis
The chart shows the trend The downside is still favored. Ethereum has printed a series of lower highs and lower lows since breaking down from the $3,000–$3,200 area.
The price is currently compressing in a range between $1,950 to $2,000. A higher high has not formed, and until ETH climbs through the $2,200–$2,300 region, the larger structure tilts bearish.
Bollinger Bands were widened dramatically during the fall as the price broke through the lower band at $1,850. This expansion was a result of heightened volatility.
It is clear that the bands are beginning to contract, which indicates a cooling. ETH trades below the middle band, currently around $1,980–$2,000, which is acting as near-term resistance.
The relative strength index fell into the 25–30 zone during the selloff, deep in oversold territory. The index has now recovered and is hovering around 40. The momentum has slightly improved, but buyers still haven’t fully reclaimed control. Pushing above 50 could strengthen the argument for a longer-lasting bounce.
The support lies in the range of $1,850 to $1,880. If that floor gives way, the next area to watch sits near $1,700–$1,750. If you look upwards, the $2,000 barrier is followed by a strong resistance of $2,120 to $2,200.
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Source: crypto.news
