The derivatives market has seen a significant increase in buying volume, reaching its peak for the year. This surge in buying activity has sparked optimism among Ethereum traders, with the technical chart suggesting that the cryptocurrency could potentially reach the $3,440 mark if the current buying momentum continues.
Currently priced at $2,732, Ethereum has experienced a 16.15% decline over the past month, favoring the bears in the market. However, signs of a possible trend reversal have started to emerge, as ETH closed the previous week with a 2.08% gain. The recent surge in buying volume in the derivatives market, coupled with the bullish technical pattern on the chart, could pave the way for ETH to establish a new market high.
Market sentiment is currently in favor of buyers, with the Taker Buy Sell Ratio hitting its highest point of the year at 1.13. This metric indicates that buyers are more aggressive in acquiring Ethereum, reflecting a strong buying presence in the market. Additionally, the Funding Rate, which measures the premium being paid by market participants, currently sits at 0.0050%, further confirming the dominance of buying activity.
The symmetrical channel that Ethereum is trading within is approaching its upper resistance level, signaling a period of market accumulation. A breakout above this level could initiate a series of successive rallies, potentially pushing ETH towards the $3,440 mark. However, Ethereum may face resistance at $2,798.34 before reaching this target, which could temporarily slow down the rally.
If buying momentum remains robust, Ethereum could surpass these resistance levels and experience a significant price surge of 23.06% to $3,442. On the other hand, if the cryptocurrency fails to break through these barriers, it may consolidate within the symmetrical triangle before attempting another breakout.
Liquidity flow data from Artemis shows a substantial surge in Ethereum liquidity, with total Netflow standing at $100.7 million over the past seven days. This influx of liquidity indicates a bullish market sentiment, suggesting that a major rally for Ethereum could be imminent.
In conclusion, the current market conditions point towards a positive outlook for Ethereum, with buying volume reaching new highs and liquidity flow surging. Traders should keep a close eye on key resistance levels and monitor buying momentum to gauge the potential for ETH to reach new highs in the near future.
