As Ethereum (ETH) revisits the $3,500 support level amidst a broader market downturn, CryptoQuant analyst ShayanBTC raises concerns over potential further declines if prevailing trends in the futures market persist.

The recent turbulence in the cryptocurrency market has led to a significant downturn for numerous altcoins, with Ethereum notably testing the lower boundaries of the $3,500 range for the first time in over three weeks, reaching a low of $3,503 earlier today.

Amidst the prevailing bearish sentiment, investor apprehension has resurfaced. Insights from the futures market suggest a shift towards bearish sentiment, with market participants positioning themselves for continued volatility and potential further declines.

In a recent analysis, ShayanBTC highlights the Taker Buy Sell Ratio, a metric gauging the aggressiveness of buyers versus sellers in the futures market. A ratio above one signals dominance by buyers, while a ratio below one indicates greater aggression among sellers.

Recent market data reveals a downward trajectory in the seven-day moving average of this ratio, failing to surpass the crucial threshold of one. This decline implies heightened selling pressure from futures traders, potentially driven by speculative activity or profit-taking amidst the current market conditions.

ShayanBTC underscores the significance of this decline in the Taker Buy Sell Ratio as a bearish signal, suggesting a possible continuation of Ethereum's downward trajectory if selling pressure persists.

Additionally, despite a remarkable 131% surge in derivatives volume to a record $24.8 billion, Ethereum's long/short ratio, measuring the ratio of bullish to bearish positions, has plummeted. With the ratio now standing at 0.8921, indicative of a prevalence of short positions, according to Coinglass data.

Presently, Ethereum is trading at $3,537 following a modest recovery from the $3,503 support level observed earlier today. Despite today's 3.58% decline, the cryptocurrency remains above both the 200-day EMA ($2,945) and the 50-day EMA ($3,381), suggesting a potential level of support amidst the current market volatility.