Ethereum, Binance Net Buy Exceeds $100 Million...Repeating the Eve of 2023 Surge?

▲ Ethereum (ETH)

Ethereum (ETH) has replicated the bottom signal observed during the 2023 bear market. Simultaneously, an unusual trend is emerging in the Binance derivatives market, where buying forces have completely taken control.

According to crypto media outlet NewsBTC on April 11 (local time), Darkfost, an analyst at on-chain analytics platform CryptoQuant, diagnosed that a significant net buying trend has been observed in the Ethereum derivatives market for the first time since the 2023 bear market. Darkfost noted that Ethereum's net trading volume, which had remained in negative territory, has now turned positive. Net trading volume is an indicator used to determine whether buying or selling pressure is dominant within a derivatives order book. Currently, this indicator shows an overwhelming buying pressure, recording a net buy amount of approximately $104 million.

This current situation is in stark contrast to the past, when the same indicator showed strong selling pressure when Ethereum's price approached its previous all-time high. The analyst explained that the shift in sentiment in the Ethereum derivatives market is contributing to the formation of a strong price bottom. Darkfost emphasized the return of buying forces, stating, "Ethereum's net trading volume, which was negative for most of the time since 2023, has now turned positive."

This data suggests a qualitative change in the market beyond a simple price rebound. The positive buying pressure on Ethereum is expected to stop the downtrend and lay the groundwork for securing new upward momentum. In particular, the fact that buying forces have taken the lead on Binance, the world's largest exchange, is expected to significantly improve global investor sentiment. If these changes in the derivatives market spread to the spot market, the pace of price increases could become even steeper.

The market is now focusing on whether future Ethereum spot ETFs and the spot market will provide support. If the buying momentum formed in the derivatives market combines with spot buying, Ethereum is highly likely to resume a full-fledged price rally. The analyst stated, "If this momentum continues and the spot market and spot ETFs begin to support this trend, Ethereum has the potential to recover its upward trend."

Currently, Ethereum is solidifying a technical bottom, signaling the prelude to a medium-to-long-term rebound. The replication of indicators seen at the tail end of the 2023 bear market is being interpreted by investors as a strong buy signal. As liquidity improves across the virtual asset market, attention is focused on whether Ethereum, as the leading altcoin, can spearhead the market's recovery.

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