• ETH has turned green on daily and weekly charts, hiking by 1.67% and 1.74% respectively.
• Ethereum’s Futures signaled a potential recovery as selling pressure eased.

Ethereum [ETH] has struggled to maintain an upward momentum over the past two weeks. Over this period, the altcoin has traded within a consolidation range of between $3500 and $3300.

These prevailing market conditions have left key stakeholders wondering what could boost ETH towards recovery.

Inasmuch, CryptoQuant analyst Burak Kesmeci has pointed out four key Futures market metrics and what they suggest about Ethereum’s trajectory.

Futures markets assess Ethereum

In his analysis, Kesmeci cited four crucial Futures market metrics including Funding Rate, Taker Buy-Sell Ratio, Open Interest, and liquidation.

Ethereum’s Funding Rate was at 0.01 at press time, which suggested that the market was healthy, with longs able to support ETH’s spot market.

Secondly, Ethereum’s Taker Buy Sell ratio was at 0.57, suggesting that buying sentiment was dominating the derivatives market.

When buyers are active, it causes a higher buying pressure, which is critical for higher prices through demand.

Additionally, Ethereum’s Open Interest has surged by 3.18% in 24 hours, signaling a slight heating up in the derivatives, although for a short term.

Finally, Ethereum’s liquidation showed that a considerable amount of short positions were being actively liquidated, with $6 million over the past day until press time.

This reduces selling pressure in derivatives markets, thus undoing the impact of rising Open interest.

Thus, selling pressure in ETH Futures markets had eased considerably. But although Open Interest may show the market is seeing heating, the bulls had entered the market and appeared to be stepping up.

Could Futures boost ETH toward recovery?

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Author: Gladys Makena