Key Points
- Bitcoin and Ethereum display distinct patterns in net taker volume across exchanges.
- Ethereum’s bullish momentum in the derivatives market could influence its shift to positive net taker volume.
Bitcoin and Ethereum have shown distinctly different patterns in net taker volume across exchanges.
The Taker Buy/Sell Ratio on CryptoQuant is a tool used to understand market sentiment by showing the proportion of buy orders to sell orders.
Ethereum’s Divergence from Bitcoin
Ethereum’s net taker volume has not been moving in the same way as Bitcoin. This divergence is crucial in shaping both the short-term and long-term outlooks for these cryptocurrencies.
If the majority of negative money numbers turn positive, Ethereum could see a significant increase in value as more traders take buy positions.
Bullish Momentum in Ethereum Derivatives
One factor that could influence this shift is the bullish momentum in the Ethereum derivatives market. This is indicated by Open Interest surpassing its previous all-time high to exceed $13 billion, a 40% increase over the last four months.
This suggests increased engagement in Ethereum’s derivatives sector. Moderately positive funding rates further highlight that long-position traders currently dominate, affirming bullishness in the short term.
Ethereum’s estimated leverage ratio has also reached a new peak of +0.40, reflecting a higher inclination for risk-taking among investors.
However, the high leverage and dominance of long positions could increase the potential for a long squeeze. This could cause a market correction if abrupt price volatility prompts these traders to swiftly liquidate positions.
High-leverage liquidations continue to threaten Ethereum’s price. Adjustments focused on high leverage show critical areas where large liquidations could trigger significant price movements.
Finally, the altcoin market began its second parabolic phase in October 2023. This marked a transition out of the Wyckoff method’s second accumulation zone, propelling altcoins into a strong uptrend.
Despite being a key player, Ethereum has shown a slower but consistent rise, setting a solid foundation that diverges from Bitcoin’s rapid surge. This methodical climb could potentially lead to a change of behavior for the king of altcoins.
