At the time of publication, Ethereum was trading at $3667, up 4% over the last 24 hours. This indicates renewed interest following a steep drop earlier this week.
The following is a summary of the information that you will find on this page.
- Ethereum’s open interest at Binance is now $8.7B. This figure is nearly 3.5x that of the bull market in 2021.
- Even though funding rates are neutral, the rising volume of transactions and increased leverage indicate a potential for continued bullish growth.
- ETH prices are above the support level. A break above $3.875 may extend gains. However, a fall below $3.380 could trigger a decline.
EthereumETH( ) has still gained 46% in the past month. This shows strong momentum despite the 3.6% decline over the previous week. Over the past seven days, prices have been fluctuating between $3,380 to $3,874, indicating a consolidation of recent gains.
Open Interest on ETH Binance reaches Record Levels
The Aug. analysis BorisVest is a CryptoQuant contributor. According to him, Ethereum’s open interest at Binance reached an all time high of $8.7billion, which was more than three-times the highest peak in the 2021 bull run. Back in the day, ETH trades at a comparable price but its open interest peaks out at around $2.5 billion.
The current upsurge has seen a significant increase in leverage and speculative positions. However, funding rates remain neutral. This indicates that the markets are not overly bullish nor bearish. It allows positions to expand without immediate corrections.
This quiet buildup Volume is another factor that supports the value of ETH. The volume of ETH trading rose by nearly 45% in the past day to exceed $28 billion. As per Coinglass dataTotal open interest on exchanges has increased by $48.26 Billion, along with an increase in derivatives. The metrics show that the growth in engagement is not due to panic or hype but rather calculated positioning.
Ethereum Technical Analysis
Technically, Ethereum is in an uptrend. The price remains above the key moving averages such as the estimated 10-, 20 and 50 day moving averages. The relative strength index, which is in neutral territory at the moment, suggests that there’s still some room to move before the market is overbought.
Short-term indicators such as momentum and MACD show signs of mildly bearishness. This could indicate a possible slowdown if the buying pressure drops. Bollinger Bands indicate that ETH is still not overpriced. If the demand increases, ETH could see a further rise in value.
The aforementioned is a bullish ETH breaks through $3,875 and stays at $3,600. This could be a scenario where ETH aims for $4,000 without excessive risks. A bearish If the momentum waned and the price fell below $3.380 then ETH might be pushed toward $3.100-$3,200. As of now, support is intact and the trend continues to be positive.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
