A shift in Ethereum’s derivatives activity on Binance is hinting at a possible change in market structure, even as ETH itself remains in a corrective phase. According to CryptoQuant contributor Darkfost, the Taker Buy Sell Ratio is no longer showing the same persistent sell-side pressure that dominated as the asset approached its all-time high.
Darkfost notes this indicator is useful for gauging which side is more aggressive in the futures market. A ratio above 1 signals buyer dominance, while a ratio below 1 points to stronger selling pressure.
During Ethereum’s run toward record highs, selling pressure in futures intensified, keeping the ratio consistently below 1. On Binance, the monthly ratio fell to 0.95, and the weekly average dropped to 0.92, reflecting a market controlled by aggressive sellers.
This context matters because derivatives now play a central role in crypto price formation. With nearly $65 billion in daily volume, the derivatives market leads price discovery, making order-flow analysis key to understanding moves beneath the surface. A ratio stuck below 1 wasn’t just a minor detail—it suggested upside momentum was being undercut by persistent selling in futures.
What’s interesting now is that the flow data has started improving before any clear reversal in Ethereum’s spot price. “On Binance, the weekly ratio has been hovering around the neutral threshold for the past two weeks,” Darkfost observes. “This shift is notable because it diverges from ETH’s price, which remains in a correction. Daily spikes above 1.12 have even occurred, showing periods of aggressive buying.”
That divergence is the core observation. While ETH hasn’t yet reflected it in price, futures market behavior is no longer uniformly defensive. The monthly average has also recovered to around 0.99—still just below buyer dominance, but a meaningful improvement from earlier readings.
Darkfost stops short of calling a confirmed reversal. “Although this still needs confirmation, it’s a constructive signal. A sustained move above 1 would mark a shift toward buyer dominance, potentially supporting a more favorable market dynamic for ETH in the near term.”
For now, the signal points more to a change in pressure than the end of the correction. If the ratio can hold near neutral and push decisively above 1, it would suggest the market driving price discovery is tilting back toward buyers.
At press time, ETH traded at $2,028.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Ethereum Shows Early Signs of a Reversal as Taker Ratio Shifts designed for a range of experience levels
Beginner Definition Questions
1 What does reversal mean in this context
A reversal is when the price trend of an asset like Ethereum changes direction In this case it suggests ETHs price might be shifting from a downtrend to a potential uptrend
2 What is the Taker Ratio
The Taker Ratio is a metric from derivatives exchanges Takers are traders who execute orders immediately at the current market price providing liquidity The ratio compares aggressive buy orders to aggressive sell orders A high ratio suggests more buyers are aggressively entering the market
3 Why is the Taker Ratio important
It shows the current sentiment and aggression in the market A shift in this ratio can signal that professional or largescale traders are changing their behavior often before a major price move becomes obvious on the regular price chart
4 Is this a guarantee that Ethereums price will go up
No It is an early sign or a signal not a guarantee Markets are influenced by many factors This is one piece of data suggesting momentum might be changing
Intermediate Mechanism Questions
5 How does a shifting Taker Ratio actually lead to a reversal
If the Taker Ratio rises it means buyers are willing to pay the asking price to get in now This can absorb all the sell orders at a certain price level creating upward pressure If sustained this can break down resistance levels and encourage more buying
6 Where can I find the Taker Ratio data
You typically find it on specialized crypto analytics platforms that track onchain and exchange data not on standard price charting apps
7 What other signs should I look for to confirm a reversal
Look for confirmation on multiple fronts
Price Action A break above a key resistance level on higher trading volume
OnChain Data Growth in new addresses a decrease in ETH held on exchanges or a reduction in selling pressure from large holders