Ethereum (ETH) has recently dropped to the $3,500 mark amid a general market decline. CryptoQuant analyst ShayanBTC believes that if trends in the futures market do not improve, Ethereum could see further decreases.
The market turbulence has caused many altcoins to reach their lowest levels in weeks. Ethereum specifically fell to the $3,503 range for the first time in over three weeks. Investor anxiety has returned as data from the futures market shows a bearish sentiment, with many expecting more declines.
ShayanBTC pointed out the Taker Buy Sell Ratio, which measures buyer aggressiveness in the futures market. The ratio has been dropping recently, indicating that sellers are dominating. This behavior could be due to speculation or profit-taking in the current market conditions.
Despite a 131% spike in derivatives volume to a record $24.8 billion, Ethereum’s long/short ratio has plummeted to 0.8921. This suggests a prevalence of short positions, according to Coinglass data.
Currently, Ethereum is trading at $3,537 after a slight recovery from the $3,503 low earlier in the day. Despite a 3.58% drop, the crypto asset remains above the 200-day EMA ($2,945) and the 50-day EMA ($3,381).