Analyst projects steeper Ethereum dips if futures market trend does not improve

As Ethereum (ETH) retests the $3,500 low amid the market-wide decline, CryptoQuant analyst ShayanBTC suggests that the asset could face further declines if current trends in the futures market do not improve.

Recent market turbulence has dragged multiple altcoins to their lowest levels in weeks. Ethereum recently fell to the lower spectrum of the $3,500 threshold for the first time in over three weeks and retested the $3,503 low earlier today.

Amid bearish conditions, investor anxiety is back. Data from the futures market shows that market participants have entered the bearish trend, betting on steeper declines and continued turbulence.

In a recent analysis, ShayanBTC highlighted the Buyer Bid Ask Ratio, which measures the aggressiveness of buyers towards sellers in the futures market. A ratio above one indicates that buyers are dominant, while a ratio below one indicates that sellers are more aggressive.

According to market data, the seven-day moving average of this rate has been decreasing recently and cannot rise above one. This bearish trend indicates that most futures traders are selling Ethereum aggressively.

Such behavior may result from speculation or profit motive in current market conditions. ShayanBTC argues that the significant decline in this rate serves as a bearish signal and suggests that the downward trend in Ethereum price may continue if this selling pressure continues.

ETH price – June 11 | Source: Trading Outlook

Meanwhile, despite derivatives volume rising 131% to $24.8 billion, Ethereum’s long/short ratio, which measures the ratio of long (bullish) positions to short (bearish) positions, witnessed a massive decline. According to Coinglass data, this rate dropped to 0.8921, indicating that short positions are dominant.

Ethereum is currently trading at $3,537 after a slight rebound from the base price of $3,503 recorded earlier this morning. Despite a 3.58% decline today, the crypto asset is trading above the 200-days EMA ($2,945) and the 50-days EMA ($3,381).