Will Traders Buy The Dip?

Ether (ETH) derivatives data has begun to highlight a structural shift. After nearly three years of sell-side dominance, ETH’s net taker volume has turned positive, possibly pointing to renewed interest from futures traders.

Key takeaways:

• ETH net taker volume reached $390 million since Jan. 6, the largest buy imbalance since January 2023.

• Since 2023, positive taker volume has aligned with range bottoms and the continuation of uptrends.

• ETH holds above the $3,000 support level despite a negative CVD, indicating absorption by larger players.

ETH net taker volume highlights a rare trend shift

Ether’s net taker volume has registered about $390 million in positive imbalance since Jan. 6, marking its strongest buy-side dominance since January 2023. The metric tracks whether traders are aggressively buying at market prices or selling into bids. A positive reading indicates conviction among traders over the long term.

Historically, strong positive flips in net taker volume since 2020 have aligned with bottoming ranges or early-stage uptrends, rather than local tops. Sustained positivity typically reflects leveraged participants’ positioning for continuation, often before the broader trend becomes visible.

This shift follows years of persistent sell-side pressure, suggesting a change in futures demand rather than a short-lived squeeze. In past cycles, similar transitions preceded multi-week trend expansions.

Related: Ethereum activity surge could be linked to dusting attacks: Researcher

ETH chases underlying liquidity

Data from CryptoQuant noted showed that while ETH traded near $3,000, cumulative volume delta (CVD) remained negative at -3,676 ETH on Monday, showing short-term selling pressure. Despite this, the 30-day correlation between price and CVD stands near 0.62, indicating price action is still partially supported by the available liquidity.

This divergence points to a corrective phase, and short-term traders appear to be taking profits. Data shows larger participants gradually repositioning, keeping ETH stable above $3,000.

From a technical standpoint, ETH has reverted to its five-month point of control from $3,050 to $3,140, in line with last week’s Cointelegraph forecast. The broader uptrend remains intact as long as daily closes hold above $3,000. A break below that level would signal a bearish shift in structure.

Hyblock data shows about $540 million in net long positions near $3,100, with another $500 million liquidity cluster below $3,000. This positioning suggests ETH price may continue to fluctuate within this range as the liquidity rebalances.

Related: Ethereum L2 MegaETH peaks at 47K TPS ahead of ‘global stress test’