Ethereum Eyes $4,000 Comeback Fueled By Bullish Buying Spree

Ethereum
(ETH),
the
world’s
second-largest
cryptocurrency,
has
been
on
a
tear
lately.
After
months
of
hovering,
the
coin
has
seen
a
surge
in
price,
and
analysts
are
now
pointing
to
signs
within
the
derivatives
market
suggesting
this
rally
might
have
legs.

Related
Reading

Taker
Buy
Sell
Ratio
Nears
Equilibrium

One
key
indicator
is
the
Taker
Buy
Sell
Ratio,
a
metric
that
tracks
the
volume
of
buy
orders
compared
to
sell
orders
in
ETH’s
perpetual
futures
market.
Traditionally,
a
ratio
below
1
suggests
more
sell
orders
are
flooding
the
market,
potentially
driving
the
price
down.
Conversely,
a
ratio
above
1
indicates
a
dominance
of
buy
orders,
often
a
bullish
signal.

SEC
Okays
Spot
Ethereum
ETFs,
Market
Expectations
Reversed

The
news
that
the
US
SEC
has
approved
spot
Ethereum
ETFs
has
caused
a
sharp
reversal
in
the
market’s
expectations
for
Ethereum
ETF
rejection
this
week,
and
as
a
result,
the
price
of
Ethereum
(ETH)
is
moving
erratically
in
late
Thursday
activity.

As
of
right
now,
Ethereum
was
trading
for
about
$3,770.
That
is
both
considerably
higher
than
the
previous
session
low
of
$3,500
and
sharply
lower
than
the
previous
session
highs
of
over
$4,000.

BOOM!!
APPROVED!
There
it
is.
The
SEC
just
approved
spot

#Ethereum
ETFs.
What
a
turn
of
events.
It’s
really
happening.

h/t

@PhoenixTrades_

pic.twitter.com/KQ39mDyCbT

—
James
Seyffart
(@JSeyff)

May
23,
2024

CryptoQuant,
a
leading
crypto
analytics
platform,
recently
reported
that
ETH’s
Taker
Buy
Sell
Ratio,
observed
using
a
7-day
simple
moving
average,
is
poised
to
cross
above
its
1-center
line.
This
signifies
a
decline
in
sell
orders
and
a
potential
rise
in
buying
pressure.
This
suggests
that
the
coin
may
soon
retake
the
$4,000
price
level.

Related
Reading

This
upward
trend
in
the
Taker
Buy
Sell
Ratio
indicates
a
potential
shift
in
market
dynamics,
noted
ShayanBTC,
a
pseudonymous
analyst
at
CryptoQuant.
If
the
ratio
continues
to
rise,
it
may
signal
a
reduction
in
aggressive
selling
pressure,
which
could
be
a
positive
development
for
ETH’s
price,
ShayanBTC
added.

Futures
Open
Interest
Reaches
New
Highs

Another
data
point
bolstering
the
bullish
case
comes
from
the
Futures
Open
Interest
metric.
This
metric
tracks
the
total
amount
of
outstanding
futures
contracts
that
haven’t
been
closed
or
settled.
A
rising
Open
Interest
suggests
more
traders
are
entering
new
positions,
potentially
anticipating
a
price
increase.

Related
Reading

According
to
Coinglass,
another
crypto
analytics
platform,
ETH’s
Futures
Open
Interest
has

skyrocketed
to
a
new
all-time
high
of
$16
billion.
This
signifies
a
surge
in
market
participation,
with
more
traders
betting
on
ETH’s
future.

The
all-time
high
OI
suggests
a
significant
increase
in
investor
confidence.
This
could
be
due
to
several
factors,
including
growing
institutional
adoption
of
ETH
and
the
upcoming
Ethereum
2.0
upgrade.

Featured
image
from
Explorersweb,
chart
from
TradingView