As a seasoned researcher and cryptocurrency enthusiast with over a decade of experience in the industry, I find myself intrigued by the current state of Ethereum (ETH). The recent 7.5% weekly decline in ETH’s price is indeed concerning, but it doesn’t tell the whole story.
This week, the cost of Ethereum (ETH) has decreased by 7.5%. Unfortunately, it hasn’t managed to match the market recovery experienced by Bitcoin (BTC) and other significant altcoins.
Yet, one expert thinks ETH’s long-term market trend appears optimistic because its price has moved into a significant area of buyer interest.
Ethereum remains in the “buy zone”
Mando CT, an expert in Web3 technology and individual trader, expressed his insights to his 600K audience on platform X, emphasizing the significance of “waiting it out” when it comes to Ethereum.
The trader said that Ethereum remains in the ‘buy zone’ from a longer-term investment perspective, adding,
“When $ETH surges, it usually takes the whole market with it, fueling altcoin runs and lifting the entire crypto ecosystem.”
On October 24th, Kyledoops from Crypto Banter pointed out an interesting trend: a surge of 96,000 ETH flowing into derivatives platforms from Ethereum exchanges. This notable influx could potentially spark heightened market activity. In the past, similar events have often preceded dramatic price fluctuations in the crypto market.
In light of the recent influx, the analyst suggested,
“This latest spike could signal another wave of price correction or significant market shifts.”
ETH’s aggregated open interest hits a yearly high
As a researcher, I find it intriguing that although the price of Ethereum might not be showing strong bullish signals, its derivatives market is buzzing with activity. Interestingly, data from VeloData indicates that ETH’s aggregated open interest (OI) has hit a new annual peak this month, suggesting a high level of investor engagement in the derivatives market.
In simple terms, the term ‘Aggregated open interest’ refers to the combined count of both buy (long) and sell (short) positions that have been initiated in a market. ‘Open interest’, on the other hand, signifies the total worth linked with these respective positions. A larger accumulated open interest can help gauge the robustness of an ongoing trend.
The accumulated Open Interest (OI) increases at the same time as the flow of ETH derivatives rises, yet it’s crucial to remember that the trading volumes in the spot market are decreasing. The term “spot trading volumes” refers to the total amount of buying and selling activity, and a decrease suggests that investors are offloading their ETH on platforms such as Binance, Bybit, and OKX in the spot market.
Institutions shared a consistent viewpoint, since inflows into ETH ETFs continued to be modest, despite growing enthusiasm for Bitcoin spot ETFs.
Over the past three weeks, Exchange-Traded Funds (ETFs) focused on Ethereum (ETH) have seen a combined inflow of approximately $75 million. Conversely, the number for Bitcoin (BTC) ETFs has been something else entirely. This contrast suggests that institutions are preferring to invest in Bitcoin ETFs rather than their Ethereum counterparts, as indicated by the difference between the two figures.
Ethereum bounces from its $2,500 demand zone
Over the daily chart, Ethereum’s price is shaping a falling triangle pattern. Starting from August 5, the cryptocurrency has attempted to break through its resistance zone, which lies between $2,750 and $2,850, on three separate occasions. However, it keeps forming higher lows relative to the rising trendline of this pattern.
From October 21st to October 23rd, Ethereum (ETH) experienced a significant drop in value, reaching approximately $2,450. This price level represented a test of an important daily support zone, which ranged from $2,500 to $2,300.
Currently, the altcoin is rebounding from its demand area. It’s crucial for Ethereum (ETH) to end the day with a closing price above its rising trendline in order to continue its upward momentum.
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2024-10-25 21:35