Ethereum’s spot volume and futures volume are moving in opposite directions according to the new Volume Bubble Map by CryptoQuant. As the price has crossed $2,750, spot trades are slowing while future-oriented trading is rising, which signals an unhappy surprise for many unprepared traders.
Spot Market Cooling Off
As the Volume Bubble Map shows, the size of bubble trading activity on spot markets has decreased significantly in recent sessions. It indicates that fewer people are swapping Ethereum through exchange platforms overall.
When spot activity decreases, it typically signifies a lack of strong buying or selling activity for the asset. Previously, these lower volumes in some areas were often followed by a leveling-off or price drop.
The Futures Market Is Heating Up
In a different light, futures interest is experiencing a major increase. Clustered, clearly marked future bubbles in yellow on the Volume Bubble Map show when traders hold huge and speculative positions. More and more traders who use leverage are buying Ethereum contracts, hoping for further price movement.
As more assets are traded in derivatives, rallies may become more probable, though getting liquidated too quickly becomes a risk if markets fall.
Something That Traders Need to Know
A noticeable difference in trading amounts between calm and aggressive markets usually serves as a warning. An increase in speculative trades compared to actual purchases can lead to market packaging.
In other words, a quick price movement can happen for Ethereum traders, causing increased market swings.
What’s Next?
Paying close attention to spot and futures volumes is important for ETH traders. If trading activity is low but futures leverage is rising, traders would be wise to either manage their risks more carefully or lighten their positions to avoid unexpected losses.
