Ethereum Price Holds Above $2,600, But Futures Dominance Raises Red Flags
The Ethereum price has managed to hold above the $2,600 zone, keeping its sights set on the $3,400 target after breaking through the liquidity area and consolidating above it.
This breakout is still intact, and as long as the price remains above $2,600, the next major target of $3,400 remains in focus.
However, on-chain numbers tell a different story. Ethereum's recovery has occurred while Binance futures activity continues to dwarf spot trading.
On June 27, ETH traded near $1,560, while the spot to futures volume ratio stood at 6.5%. By October 1, ETH had climbed to roughly $2,700, representing a gain of about 73% from late June. Yet the spot to futures ratio had only edged up to 8%.
Put simply, spot volume is still just 8% of futures volume on Binance, despite Ethereum adding more than $1,100 to its price. This divergence is hard to ignore, according to analyst Amr Taha.