Ethereum buy-sell ratio tops 1 on Binance futures

The taker buy-sell ratio for Ethereum perpetual futures on Binance climbed above 1, with a monthly average of about 1.016 and the metric holding above 1 for several consecutive days, according to CryptoQuant analyst Darkfost.

The ratio tracks the balance between market buy and market sell volumes on perpetual contracts. A reading above 1 indicates that market buy orders exceeded market sell orders during the measured period.

CryptoQuant analyst Darkfost wrote that the pattern represents “the early stages of a more constructive trend” and described it as “a progressive return of buyer dominance on perpetual markets.” The analyst said the reading marks an improvement in sentiment not seen since 2023.

The signal matters in part because futures activity on Binance now far exceeds spot trading. Binance’s spot-to-futures volume ratio recently fell to 0.13, which corresponds to roughly $7 in futures activity for every $1 of spot ETH traded. Binance holds about 37% of global ETH open interest.

Market participants and analysts noted the ratio’s rise has been gradual rather than abrupt. They wrote that a slow increase in taker buy pressure can limit the buildup of highly leveraged positions that tend to trigger large liquidations after sudden spikes in derivatives demand.

Trading mechanics mean a futures-led price move can diverge from spot market buying. If leveraged futures positions unwind quickly, volatility in ETH prices could increase.

Perpetual futures are derivative contracts that provide long or short exposure without an expiration date. Open interest measures the total value of outstanding derivative positions on an exchange.

The recent streak of buyer-dominated taker activity on Binance is the first sustained period with the monthly average above 1 since 2023. The near-term outlook will depend on whether spot buying increases alongside the rise in futures demand.