Ethereum (ETH) has been trading in a tight range since early February, moving between key support and resistance levels. Despite this sideways movement, futures traders are showing confidence in ETH's potential upside by opening buy contracts.
Ethereum’s Futures Market Remains Strong
Analysis of the ETH/USD one-day chart shows that the top altcoin has been trading within a horizontal channel, with resistance at $2,799 and support at $2,585. Despite this, futures traders are maintaining a bullish outlook and increasing buy orders.
A significant indicator of this positive sentiment is Ethereum’s Taker-Buy-Sell Ratio, which has reached its highest level since January. According to CryptoQuant, it currently stands at 1.09.
The taker buy-sell ratio measures the ratio of buy and sell volumes in the futures market of an asset. Values above one indicate more buying activity, while values below one suggest more selling among futures traders.
With ETH's taker-buy-sell ratio at 1.09, there is a rising optimism among futures traders, even though the price has been relatively flat in recent weeks.
Additionally, ETH’s funding rate remains positive despite the price consolidation, currently at 0.0051%.
The funding rate represents the payment transferred between long and short futures contract holders based on the spot price and futures price difference. A positive funding rate indicates that long positions are paying shorts, signaling a bullish bias in the market sentiment.
In times of price consolidation like now, a positive funding rate suggests that buyers are willing to pay a premium to hold long positions, indicating confidence that the asset may surge once the consolidation phase is over.
ETH Bulls Aim to Break $2,758 for a Potential $3,000 Target
A breakout above the $2,799 resistance level could drive ETH towards $2,967 and possibly beyond $3,000 if demand strengthens at that level, reaching $3,202.
However, if bears take control and push ETH below the $2,585 support, the price may drop to $2,467. Failing to defend this level could lead to further decline towards $2,150.