CryptoQuant analyst has provided insight into the short-term risks facing Ethereum investors, noting that aggressive selling is taking place among futures investors. As Bitcoin, Ethereum, and altcoins experience a decline ahead of the US inflation data and FED interest rate decision, Ethereum’s price may face further downward pressure as it approaches $3,530.
The analyst pointed out that the 7-day moving average of the Buyer Buying Selling Ratio, which indicates buyer dominance or aggressive selling, currently shows a value below one, signaling that sellers are dominating the market. This suggests that most futures investors are selling Ethereum aggressively for speculative purposes or profit, painting a bearish picture for ETH.
As Ethereum attempts to break the $4,000 mark, investors are advised to keep an eye on the behavior of futures market participants. The Buyers Bid Ask Ratio chart also reflects a similar trend, with buyers failing to dominate and sellers showing increased aggressiveness in recent days.
The analyst warns that this significant decline in the metric is a bearish signal for ETH, indicating that the current downward trend may continue if selling pressure persists. As a result, investors should remain cautious and monitor market dynamics closely.
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