Despite the decline in open interest, Ethereum is nearing resistance! Can ETH price hold on to buyers’ hopes?
Confidence in the Ethereum price has been growing in recent weeks as the overall cryptocurrency market capitalization prepares to gain some of its former momentum. With Bitcoin’s dominance showing a slight decline, traders are increasingly betting on Ethereum. This drove the price of Ethereum towards an important immediate resistance level. Analysts are now keenly watching whether Ethereum will break the $2,500 mark and see a significant uptrend or a downward trend.
OI loses momentum near its high.
Data from Coinglass shows that Ethereum’s open interest (OI) has recently decreased, suggesting that market momentum is decreasing. OI fell from a high of $7.95 billion to $7.57 billion, a decline of more than $380 million. This trend indicates that traders are actively closing futures positions, which in turn is reducing Ethereum’s volatility.
Over the past 24 hours, the Ethereum price has experienced total liquidations exceeding $15 million. This comes as Ethereum struggles to break above $2,300, resulting in the liquidation of $10 million worth of long positions.
According to a recent report by cryptocurrency analytics firm IntoTheBlock, Ethereum’s market capitalization has surged 87% from around $149 billion last year to its current value of $280 billion. Despite this growth, Ethereum’s performance compared to other major assets indicates that there is still room for improvement, especially considering the numerous positive developments the asset has experienced in 2023.
Ethereum’s layer-1 scalability issues and high transaction fees have halted the expansion of the DeFi ecosystem. Despite being a leader in decentralized applications, Ethereum’s scalability limitations have resulted in high costs and slow transactions, leading to growing frustration among users and developers.
On the other hand, Solana has developed rapidly, outpacing Ethereum with high throughput and low transaction costs. Solana has recently dominated the altcoin market with strong buying demand, gaining significant market share and outperforming ETH.
What’s next for ETH price?
Ethereum price crossed the 20-day exponential moving average (EMA) and reached $2,300, but was unable to maintain momentum as selling pressure increased. The current downtrend is targeting a downtrend to solidify its position. At the time of writing, ETH is trading at $2,278, down more than 0.8% from yesterday’s price.
If the price remains above $2,300, Ethereum is expected to reach a 52-week high of $2,403. This level is very important for sellers to defend against. This is because a breakout sustained trade above this level could trigger the next uptrend phase, potentially pushing ETH price towards the $2,500 level.
Conversely, if Ethereum encounters resistance at this key level and begins to decline, it could retest significant support levels around $2,200. For sellers to take advantage, a break above rising support is required. In this case, the ETH price may be below $2K.