- ETH’s funding rate also increased over the past few days.
- In case of a correction, ETH might drop to $3.3k again.
As the king of altcoins, Ethereum [ETH], inches towards the $3.7k mark, it has reached a remarkable milestone. One of ETH’s key derivatives metrics has reached an all-time high. But is this a bullish signal, or will it have a negative impact on ETH’s price action?
Ethereum’s record could attract bears
Ethereum’s Open Interest (OI) has reached an all-time high of over $17 billion. An increase in OI means that more traders are entering positions in a futures or options contract, and more money is likely entering the market.
Source: CryptoQuant
In fact, another derivatives metric, the funding rate, also witnessed a considerable rise over the last few days. A rise in the metric is bullish, as it usually indicates an optimistic market, where traders are willing to pay more to keep their long positions.
Though at first glance this might give a notion of a continued price rise, the reality might be different. As evident from the chart above, whenever open interest spiked sharply, it was followed by price corrections.
Such episodes happened in November 2021 and June 2024. On both of these occasions, the spike in OI somewhat marked a market top.
Will history repeat itself?
To check whether ETH was at its market top, AMBCrypto dug deeper into the token’s on-chain data. As per our analysis of CryptoQuant’s data, ETH’s exchange reserve was increasing—a sign of rising selling pressure.
Additionally, its stochastic was also in the overbought zone, hinting at a rise if sell-offs, which often results in price corrections.
Apart from this, we also found that ETH’s seller exhaustion constant peaked. It was clear from the chart that whenever the metric hit a top, ETH’s price plummeted substantially in the following days.
Source: Glassnode
However, it was interesting to note that the Relative Strength Index (RSI) was yet to enter the overbought position. This suggested that there was still room for more buying, which can help Ethereum maintain a bullish momentum.
At the time of writing, the king of altcoins was testing a support. If the RSI is to be believed, then Ethereum might successfully test the level and continue to move northward.
Read Ethereum’s [ETH] Price Prediction 2024–2025
However, if the massive rise in OI and funding rate causes a price decline, like what happened in history, then ETH might drop to its lower support.
To be precise, a drop from the current price level might first push ETH down to $3.38k again.
Source: TradingView
- ETH’s funding rate also increased over the past few days.
- In case of a correction, ETH might drop to $3.3k again.
As the king of altcoins, Ethereum [ETH], inches towards the $3.7k mark, it has reached a remarkable milestone. One of ETH’s key derivatives metrics has reached an all-time high. But is this a bullish signal, or will it have a negative impact on ETH’s price action?
Ethereum’s record could attract bears
Ethereum’s Open Interest (OI) has reached an all-time high of over $17 billion. An increase in OI means that more traders are entering positions in a futures or options contract, and more money is likely entering the market.
Source: CryptoQuant
In fact, another derivatives metric, the funding rate, also witnessed a considerable rise over the last few days. A rise in the metric is bullish, as it usually indicates an optimistic market, where traders are willing to pay more to keep their long positions.
Though at first glance this might give a notion of a continued price rise, the reality might be different. As evident from the chart above, whenever open interest spiked sharply, it was followed by price corrections.
Such episodes happened in November 2021 and June 2024. On both of these occasions, the spike in OI somewhat marked a market top.
Will history repeat itself?
To check whether ETH was at its market top, AMBCrypto dug deeper into the token’s on-chain data. As per our analysis of CryptoQuant’s data, ETH’s exchange reserve was increasing—a sign of rising selling pressure.
Additionally, its stochastic was also in the overbought zone, hinting at a rise if sell-offs, which often results in price corrections.
Apart from this, we also found that ETH’s seller exhaustion constant peaked. It was clear from the chart that whenever the metric hit a top, ETH’s price plummeted substantially in the following days.
Source: Glassnode
However, it was interesting to note that the Relative Strength Index (RSI) was yet to enter the overbought position. This suggested that there was still room for more buying, which can help Ethereum maintain a bullish momentum.
At the time of writing, the king of altcoins was testing a support. If the RSI is to be believed, then Ethereum might successfully test the level and continue to move northward.
Read Ethereum’s [ETH] Price Prediction 2024–2025
However, if the massive rise in OI and funding rate causes a price decline, like what happened in history, then ETH might drop to its lower support.
To be precise, a drop from the current price level might first push ETH down to $3.38k again.
Source: TradingView
Иногда, чтобы сделать шаг вперед, нужна поддержка. Помощь по покеру предлагает игрокам все необходимые инструменты для улучшения навыков. Анализ раздач, подсказки по стратегии и рекомендации по тактике помогут вам быстрее освоиться и улучшить результаты. Этот ресурс станет надежным помощником как для начинающих, так и для опытных игроков.
Glue Dream strain I really like reading through a post that can make men and women think. Also, thank you for allowing me to comment!
where buy cheap clomiphene price clomiphene for low testosterone where can i buy generic clomiphene without prescription clomiphene challenge test protocol order clomiphene without a prescription clomiphene tablets for sale get cheap clomiphene without rx
I am in truth happy to glance at this blog posts which consists of tons of profitable facts, thanks for providing such data.
More posts like this would create the online play more useful.
buy azithromycin 500mg for sale – order generic metronidazole 400mg flagyl over the counter
purchase semaglutide pill – cheap rybelsus 14 mg cyproheptadine over the counter
motilium 10mg pill – sumycin for sale generic flexeril
inderal pills – inderal sale buy methotrexate pill
amoxicillin brand – buy valsartan generic order combivent 100 mcg online cheap
buy augmentin 1000mg for sale – atbioinfo buy ampicillin antibiotic
order generic esomeprazole 40mg – nexiumtous buy esomeprazole 40mg online
mobic 7.5mg uk – https://moboxsin.com/ buy mobic 15mg generic
cost deltasone 5mg – aprep lson buy deltasone 5mg pills
cheap ed pills – fast ed to take site can you buy ed pills online
purchase amoxicillin generic – https://combamoxi.com/ amoxil sale
order diflucan 100mg online cheap – site buy generic forcan
purchase lexapro sale – https://escitapro.com/# escitalopram 20mg usa
cenforce cheap – https://cenforcers.com/ cenforce 100mg drug
how long before sex should you take cialis – fast ciltad what is the difference between cialis and tadalafil
cialis professional vs cialis super active – on this site cialis prices in mexico
ranitidine 300mg pill – https://aranitidine.com/# ranitidine tablet
sildenafil citrate 50mg tablets – https://strongvpls.com/ cheap viagra online india
I’ll certainly return to be familiar with more. zithromax over the counter
This is the stripe of serenity I take advantage of reading. https://prohnrg.com/product/loratadine-10-mg-tablets/
More articles like this would make the blogosphere richer. https://aranitidine.com/fr/en_france_xenical/