"Aggressive buying takes over the market"...Ethereum detects an all-time high surge signal in 3 years.

▲ Ethereum (ETH)

For the first time in approximately three years, a strong signal of buying dominance has been detected in the Ethereum (ETH) derivatives market, indicating a structural shift towards a price rebound.

According to BeInCrypto on April 10 (local time), Binance, the world's largest virtual asset exchange, recorded an Ethereum taker buy/sell ratio of 1.016, staying above 1 for several days. The taker buy/sell ratio is an indicator that measures the relative balance between market buy volume and market sell volume in perpetual futures contracts. A reading above 1 indicates that there are more aggressive buyers purchasing assets at market price than sellers.

Darkfost, a CryptoQuant certified analyst, diagnosed this phenomenon as "the early stages of the Ethereum market moving towards a more constructive trend." Darkfost emphasized that the gradual increase and sustained presence of this indicator above 1 is a positive development not seen since 2023. A gentle upward trend, rather than a sharp surge, is evidence of forming a solid buying base while reducing the risk of cascading liquidations due to excessive leverage.

Data from the Ethereum futures market is considered important because Binance currently accounts for approximately 37% of the total open interest in Ethereum worldwide. Binance's spot-to-futures trading volume ratio recently dropped to 0.13, meaning that for every $1 of actual spot trading, about $7 of trading occurs in the futures market. This imbalance supports the fact that short-term price fluctuations are determined more by position building in the derivatives market than in the spot market.

BeInCrypto noted that Ethereum's sentiment is structurally improving despite ongoing macroeconomic uncertainties and geopolitical tensions. However, a futures-led rally carries the risk of amplifying volatility during position liquidations if not supported by spot demand. Darkfost analyzed that the current indicator is a bullish signal not seen since 2022, suggesting that the market's buying dominance sentiment is gradually spreading.

Ethereum is gaining new upward momentum based on strong demand in the derivatives market. The combination of Binance's dominant open interest volume and the buying dominance indicator raises expectations that Ethereum's price may break out of its downtrend and enter a full recovery phase. Investors are closely watching whether the buying pressure in the futures market will lead to strong demand in the actual spot market, completing a stable rally.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*