Ethereum Futures Traders Selling Aggressively, Will ETH Price Drop Further?

Amid the broader cryptocurrency market correction, the Ethereum (ETH) price has faced significant selling pressure, with its price dropping 3.5% to $3,550. Additionally, Ethereum’s daily trading volume has surged by 84%, reaching $14.8 billion.

Ethereum Futures Traders Sell Aggressively

With Ethereum’s price struggling to surpass the $4,000 mark, traders might want to focus on the behavior of futures market participants, as per the CryptoQuant report. The chart below displays the 7-day moving average of the Taker Buy Sell Ratio, which measures the relative aggressiveness of buyers versus sellers. A value above one indicates buyer dominance, while a value below one indicates aggressive selling.

As shown in the chart, the ratio has failed to rise above one and has been declining sharply in recent days. This trend suggests that most futures traders have been selling Ethereum aggressively, either for speculative purposes or to realize profits. This significant drop in the metric is a bearish signal, indicating that the current downward retracement could continue if this trend persists.

On the other hand, Santiment’s Network Realized Profit/Loss (NPL) suggests that holders are selling at significant profits, while steep dips indicate holders realizing losses, potentially signaling panic sell-offs and investor capitulation.

For ETH, the NPL indicator spiked dramatically from 36.69 million on June 10 to 1.06 billion on June 11. This positive trend indicates that holders are selling at substantial profits, hinting at the formation of local tops.

Uncertainty Surrounding Spot Ether ETF Approval

Analysts believe that ETH is failing to catch the bullish momentum as there’s no clarity on how long it would take for the SEC to approve the S-1 filings. Despite the Ethereum investment inflows hitting record last week, investors aren’t sure whether this shall continue further.

However, even if the U.S. Securities and Exchange Commission (SEC) approves filings from BlackRock, Fidelity, VanEck, and other firms this week, investors worry that the current market conditions are not conducive to demand for Ethereum ETFs.

For the Ethereum price, there’s a notable support zone, comprising the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419.

It will be interesting to see whether the Ethereum whale accumulation continues or not going ahead. Additionally, macroeconomic concerns are showing further signs of stress.