Recent revelations indicate that Ethereum has faced a tougher ride compared to its cryptocurrency counterparts. However, there are promising indicators suggesting a potential positive turnaround on the horizon.
CryptoQuant analyst Percival reports a notable rise in Ethereum’s open interest, signaling increased investor optimism for a potential price hike. Ethereum’s open interest has surged to $9.6 billion, a 28.57% increase since August, although it remains below June’s $13 billion peak.
This growing open interest reflects traders’ anticipation of a price uptick, with many positioning for heightened demand. Percival attributes this shift to factors such as potential Federal Reserve interest rate cuts and the increasing focus on Ethereum’s blockchain tokenization future. Such developments could boost interest in decentralized finance (DeFi) protocols, enhancing Ethereum’s appeal to long-term investors.
Percival also pointed out Ethereum’s Relative Strength Index (RSI) at 61, suggesting market overheating. The “convergence” between open interest and RSI levels implies that any price corrections will likely be brief, offering traders opportunities to anticipate a market rebound.
The analyst predicts a possible Ethereum correction of approximately 7% to 9% before resuming its upward trajectory, favoring long positions for those anticipating a rise in price and demand.
Ethereum currently trades at $2,611, experiencing a slight 0.1% dip over the past 24 hours. This follows a robust week with a 9.3% increase and nearly a 15% rise over the last month. According to another crypto analyst, Ali, Ethereum might be nearing a substantial rally. Ali notes that Ethereum recently touched the lower boundary of a channel, a level that historically leads to an average 130% price surge.
Should this pattern persist, Ethereum could climb to $6,000, provided it maintains its key support level of $2,300. Historically, every bounce from this channel’s lower boundary has resulted in significant price increases for Ethereum. If the current pattern holds, Ethereum could experience a similar rise, bolstered by the robust support level of $2,300.
Despite market volatility, Ethereum has thus far managed to stay above the critical $2,300 support level, reinforcing the belief that a bullish breakout may indeed be imminent.