Ethereum is trading below the $3,700 level after days of heightened volatility and mounting uncertainty. The recent price action reflects a clear struggle by bulls to defend key demand zones, as bearish momentum continues to dominate short-term trends. Despite multiple rebound attempts, Ethereum has been unable to reclaim crucial resistance levels, raising concerns of a potential deeper correction in the near term. Related Reading: Is Bitcoin Overheated? Key Signal Flashes Warning Similar To 2021 And 2024 Market Tops However, strong fundamentals such as increasing institutional adoption, network growth, and broader market developments continue to support the bullish thesis for Ethereum over the coming months. These structural tailwinds suggest that the current weakness may be part of a healthy consolidation phase before the next major upward move. Top analyst Maartunn shared key insights revealing that the Ethereum Net Taker Volume (Daily) has turned sharply negative, signaling a growing dominance of sell-side pressure. This metric quantifies the difference between market buy and sell orders, providing a clear view of the current sentiment among active traders. Ethereum Net Taker Volume Signals Bearish Dominance Top analyst Maartunn shared critical insights regarding Ethereum’s current market dynamics, emphasizing that Net Taker Volume for ETH sits at -$418.8 million (Daily). This figure indicates that taker sellers have offloaded approximately 115,400 more ETH than buyers were willing to absorb through market orders. Net Taker Volume measures the difference between buying and selling volumes executed at market prices, offering a direct view of the aggressiveness of traders prioritizing immediate execution over optimal pricing. Such a significant negative Net Taker Volume reflects that market participants with a bearish outlook are dominating order books, pushing sell orders aggressively into the market. This behavior signals that sellers are not waiting for better prices, highlighting a serious short-term bearish pressure that can weigh on Ethereum’s price in the immediate term. However, this bearish signal comes after weeks of intense bullish momentum where Ethereum surged aggressively, reaching a local high of $3,940. Given this context, some analysts interpret the current selling pressure as a healthy correction rather than a structural trend reversal. Despite the negative Net Taker Volume, Ethereum’s long-term fundamentals — including institutional accumulation, network growth, and broader adoption trends — remain intact. The current bearish dominance in futures markets serves as a short-term cautionary signal, but it does not yet suggest a breakdown of Ethereum’s overall bullish structure. Analysts will be closely monitoring whether ETH can stabilize and hold key support levels in the coming days. Related Reading: Ethereum Consolidation Deepens As Taker Buy/Sell Ratio Hits One Of The Lowest Levels This Year ETH Price Analysis: Consolidation Below Key Resistance Ethereum (ETH) is trading at $3,624.67 after a volatile week marked by sharp pullbacks and failed breakout attempts. The daily chart shows ETH struggling to reclaim the critical resistance level at $3,860.80, which has become a psychological barrier after multiple rejections. Despite bouncing from a local low near $3,360, the bulls are finding it difficult to sustain momentum above the $3,700 zone. The 50-day moving average (MA) at $3,059.75 continues to slope upward, reflecting a longer-term bullish trend, while the 100-day MA at $2,742.48 and the 200-day MA at $2,503.32 act as major support zones. However, in the short term, price action indicates a bearish bias as ETH forms lower highs, suggesting weakening bullish momentum. Related Reading: Bitcoin Investors Selling More Aggressively As Bull Cycle Matures: Risk Appetite Fades? Trading volumes remain moderate, lacking the surge needed to propel Ethereum above resistance. If ETH fails to reclaim the $3,860 level soon, a retest of the $3,360 support zone could be on the cards. Conversely, a strong daily close above $3,860 would signal a potential continuation of the uptrend. Featured image from Dall-E, chart from TradingView
The on-chain analytics firm Glassnode has revealed how the Ethereum futures market is still overheated despite the long squeeze that just occurred. Ethereum Open Interest Still Notably Above The Yearly Average In a new post on X, Glassnode has discussed about how the Ethereum futures market has changed during the past day. ETH, like other digital assets, has witnessed significant volatility inside this window. Sharp price action usually means chaos for the derivatives side of the sector and indeed, a large amount of liquidations have piled up on the various exchanges. Related Reading: Indicator That Foreshadowed XRP’s 14% Crash Gives Buy Signal For Solana Given that the price action has been majorly towards the downside for Ethereum, the long investors would be the most heavily affected. Below is the chart shared by the analytics firm that shows the trend in the long liquidations related to ETH over the past year. From the graph, it’s visible that the Ethereum futures market has just witnessed a massive amount of long liquidations. “Yesterday, $76.4M in ETH long liquidations hit the market, with $55.8M wiped out in a single hour – the second-largest spike in a year, just behind Dec 9’s $56M,” notes Glassnode. These liquidations have meant that a notable ETH leverage flush-out has occurred on the derivatives platforms. Here is another chart, this time for the Open Interest, which showcases the market deleveraging: The “Open Interest” is an indicator that keeps track of the total amount of Ethereum-related futures positions that are open on all centralized derivatives exchanges. At the start of the month, this metric was sitting around $20.5 billion, but after the mass liquidation event, its value has come down to $15.9 billion. This suggests $4.6 billion in positions have been wiped out from the market. While this represents a large decrease, it has actually not been enough to cause a sufficient cooldown in the Open Interest. As displayed in the above chart, the 365-day moving average (MA) of the Ethereum Open Interest is currently situated at $13 billion. Thus, the metric’s daily value is around 22% higher than the average for the past year. This could be a potential indication that the leverage in the sector is still at elevated levels, despite the massive amount of liquidations that the long investors have suffered. Related Reading: Bitcoin Traders Fearful For First Time Since October: Buying Signal? Historically, an overheated futures market has generally unwound with volatility for the coin’s price, so it’s possible that more sharp action could follow for ETH in the near future. ETH Price Ethereum saw a crash towards the $2,100 mark yesterday, but it would appear the cryptocurrency has seen a rebound as its price is now trading around $2,800. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Data shows the Ethereum Open Interest has recently observed a sharp jump to a new all-time high (ATH) of around $16.8 billion. Ethereum Open Interest Has Shot Up Recently In a new post on X, CryptoQuant community analyst Maartunn has discussed about the latest trend in the Ethereum Open Interest. The “Open Interest” here is an indicator that keeps track of the total amount of ETH-related derivatives positions currently open on all centralized exchanges. Related Reading: Glassnode’s Bitcoin “Seller Exhaustion” Indicator Just Flashed A Signal: Bottom In? Below is the chart the analyst shared that shows this metric’s trend over the past week. The graph shows that the Ethereum Open Interest has observed a sharp increase over the past day. This means the investors have just opened many new positions on the derivatives market. Generally, the total amount of leverage in the market goes up whenever new positions pop up, so mass liquidation events can become more probable. A Mass liquidation event, popularly called a squeeze, can be a violent event where a large amount of liquidations occur simultaneously, feeding back into the price move that caused them. This provides more fuel for the move, which in turn causes even more liquidation. Ethereum has been rallying recently, so some speculative interest is normal, but the scale of the latest Open Interest increase may be concerning. The metric has increased by around 19% within a 24-hour span, reaching a new ATH of around $16.8 billion. As has often happened in history, this rapid growth in the Ethereum Open Interest could once again lead into volatility for the asset’s price. “This is guaranteed for heavy fireworks,” notes Maartunn. In theory, the volatility resulting from this increase in the indicator could take the asset in either direction. Still, since the rise has come alongside a rally in the ETH price, these positions will likely be long. Related Reading: Bitcoin Sentiment Cools Down From Extreme Greed: Can Rally Restart Now? And indeed, as an analyst pointed out in a CryptoQuant Quicktake post, the Ethereum Funding Rates have been positive recently, implying the long positions have been outweighing the short ones. Usually, a squeeze is more likely to affect the side of the market with more positions. As such, if the overheated derivatives market unwinds in a volatile storm, Ethereum may come out with a drawdown in the price. ETH Price At the time of writing, Ethereum is trading at around $3,500, up almost 7% over the last seven days. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
While the approval of spot Ethereum ETFs in the US failed to trigger a massive rally for ETH, it sparked a significant surge in the derivatives market. The approval of spot ETFs was hailed as a major regulatory breakthrough for the crypto market, providing a new level of legitimacy and accessibility for Ethereum. The impact […]
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Data shows the Ethereum Open Interest has been trading at relatively low levels recently. Here’s what this could mean for the asset’s price. Ethereum Open Interest Has Been Moving Sideways Since Its Plunge As explained by an analyst in a CryptoQuant Quicktake post, the ETH Open Interest has followed a similar trajectory as the price of the cryptocurrency recently. The “Open Interest” here refers to the total number of derivative-related contracts open for Ethereum on all exchanges. Related Reading: Dogecoin To $1: Analyst Thinks Dream Milestone Could Be Hit In Coming Weeks When the value of this metric goes up, it means that investors are currently opening up new positions on these platforms. Generally, this kind of trend leads to an increase in the market’s total leverage, so the asset price could become more volatile. On the other hand, a decline in the indicator implies the investors are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Such a drawdown may accompany violent price action, but once the drop is over, the market could become more stable due to the reduced leverage. Now, here is a chart that shows the trend in the Ethereum Open Interest over the last few months: The value of the metric appears to have witnessed a sharp plunge recently | Source: CryptoQuant As displayed in the above graph, the Ethereum Open Interest registered a sharp drop earlier alongside the asset’s price. The plunge in the metric was naturally caused by the long contract holders being washed out in the price drawdown. As the price has mostly consolidated sideways since the decline, so has the value of the Open Interest. The quant notes, This alignment suggests a cooling down of activity within the futures market. Consequently, the market appears poised for the resurgence of either long or short positions, potentially initiating a fresh and decisive market movement in either direction. Another indicator related to the derivative market that could be relevant for Ethereum’s future price action is the funding rate. This metric tracks the periodic fees that derivative contract holders are currently paying each other. Related Reading: Bitcoin Mega Whales Are Buying, Time For Rally To Return? Positive funding rates imply that the long holders are paying the shorts a premium to hold onto their positions; hence, that bullish sentiment is dominant. Similarly, negative values suggest that a bearish sentiment is shared by the majority of the derivative traders. The chart below shows that the Ethereum funding rate has recently turned red. The data for the ETH funding rates over the last few months | Source: CoinGlass Historically, the market has been more likely to move against the opinion of the majority, so the fact that the funding rate has flipped negative may be a good sign for the chances of any potential uptrends to start. ETH Price Ethereum has gradually increased over the last few days, as its price has now reached $3,200. Looks like the value of the coin has gone up a bit over the past few days | Source: ETHUSD on TradingView Featured image from Kanchanara on Unsplash.com, CoinGlass.com, CryptoQuant.com, chart from TradingView.com