Current Ethereum Price: $2,980

• Ethereum’s Elevated Taker Buy-Sell Ratio Indicates a Surge Driven by Derivative Traders on Friday.
• US Investor Sentiment Remains Cautious Amid Significant Outflows from ETH ETFs and A Drop in Coinbase Premium.
• ETH May Face Resistance at the 20-Day EMA Following Support from a Key Symmetrical Triangle.

Ethereum (ETH) recently achieved a notable 5% gain on Friday, effectively reversing the losses experienced during the post-CPI volatility earlier in the week.

This notable upward movement is primarily attributed to derivative investors, as evidenced by a rise in the Taker Buy-Sell Ratio. This critical metric evaluates the balance between buy volume and sell volume for market orders within perpetual swap trades.

The ratio escalated sharply from 0.906 on Tuesday, reaching 1.05 by Friday—its highest point since December 3. Crossing the threshold of 1 signifies a clear reinvigoration of bullish sentiment among perpetual market traders focusing on ETH.

Similarly, the open interest (OI) in Ethereum futures has surged by 400K ETH on Friday, correlating with the increase in the Taker Buy-Sell Ratio, according to data from Coinglass. Open interest reflects the total value of outstanding contracts in a derivatives market, showcasing heightened trader participation and optimism.

US Selling Pressure Remains Despite Recent Price Gains

Even with the increase in price over the past few hours, the Coinbase Premium Index for Ethereum has consistently declined, signaling continued selling pressure. This index gauges the sentiment of US traders by analyzing the price differences between Coinbase Pro and Binance exchanges.

Values falling below zero indicate that there is notably weak buying activity among US traders, which could further hinder broader market confidence and appetite for Ethereum.

In a similar vein, Ethereum spot exchange-traded funds (ETFs) in the US have experienced an outflow streak spanning six consecutive days since December 11, amounting to approximately $630 million, according to SoSoValue data. This pattern reveals a significant shift in capital sentiment as traders withdraw funds amid uncertainty regarding future price movements.

Ethereum Price Forecast: Potential Rejection at the 20-Day EMA

Over the past 12 hours, a total of $56 million in Ethereum liquidations was recorded, with a predominant $42.8 million stemming from short liquidations, data from Coinglass reveals. This level of liquidations highlights the precarious nature of market positions as traders react to swift price changes.

Ethereum currently finds itself facing notable resistance at the 20-day Exponential Moving Average (EMA) after rebounding from the lower boundary of a crucial symmetrical triangle, a formation established since November 21.

In order for ETH to move decisively higher, it needs to establish a solid breakout above the 20-day EMA and subsequently challenge the triangle’s resistance before aiming for the significant hurdle at $3,470. Along the way, Ethereum must also clear the 50-day, 100-day, and 200-day EMAs, each representing further layers of resistance.

If the price drops below the symmetrical triangle, ETH could find support at $2,620, a critical level to monitor going forward.

Moreover, the Relative Strength Index (RSI) is currently testing its moving average and the neutral line, while the Stochastic Oscillator (Stoch) shows signs of retreat from oversold territory. Should both indicators cross back above their respective neutral levels, this could potentially strengthen bullish momentum and facilitate a price rally.

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