Ethereum OI has been suffering from the greatest cleaning since the beginning of 2024 – details

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Ethereum has first dropped below USD 4000 from the beginning of August, which means a significant change in market moods. After weeks of good performance, ETH lost almost 20% of its value from September 13, leaving many traders concerned about the next move. The wider market correction fueled uncertainty, but some analysts say that this is an vital reset that could prepare the basis for renovated growth.

The best Darkfost analyst emphasizes that Ethereum’s open interest experiences one of his greatest reset. He notes that after a long period of stubborn rush, the surplus lever has been punished, which leads to acute contraction in positions. This decrease is particularly noticeable in the case of Binance, in which most of the last ETH trade operations took place.

While the decrease in price and sentiment seems negative, analysts see potential positive advantages in this reset. Lower open interest often reduces the risk of cascading liquidation and allows market stabilization. In the case of Ethereum, this moment can serve as a critical test of its ability to maintain a powerful level of support and preparing the stage for the next move after the stubborn rush returns.

Open percentage of Ethereum means a turning point

Darkfost explains that the last change in Ethereum’s open interest is not only significant, but also one of the sharpest reset observed since the beginning of 2024. Historically, such reset occurs periods when excessive lever shifts interest at unbalanced levels, as in the case of ETH in recent weeks. The cryptocurrency attracted a lot of attention on the market, powered by ETF enthusiasm and powerful accumulation patterns, which made it susceptible to acute liquidation.

Ethereum open interest by exchange Source: Darkfost

When the liquidation accumulates and interest falls, immediate sales pressure often begins to soothe. This tends to create conditions in which the market can stabilize, and in some cases prepare to recover. Dynamics can be perceived as a “cleansing” effect, leaching over -expanded traders and restoring balance to the market structure.

In detail, Binance recorded the highest average monthly drop, and over $ 3 billion was erased on September 23, and then another $ 1 billion yesterday. Bybit also stood up to $ 1.2 billion, and OKX fell by about $ 580 million. These numbers emphasize the scale of reset on the main derivative platforms.

This contraction reflects the broader resetting of the market, giving up the environment, which has become dangerously excessively stretched. In the case of Ethereum, this may mean the beginning of a healthier phase, in which reduced speculative pressure allows organic demand and basics to play a stronger role in shaping the next trend.

Insight into the price: testing critical levels

Ethereum (ETH) trads nearly 3,939 USD, which means a acute decrease by over 5% in the last session and expanding the correction from the top at the beginning of September above USD 4,700. This decrease brought ETH below the key psychological level worth USD 4000 for the first time since August, signaling the growing pressure for sale.

Testing ETH Previous resistance as support Source: Ethusdt Chart on TradingView
Testing ETH Previous resistance as support Source: Ethusdt chart on TradingView

The chart shows that ETH breaks down after the creation of a double upper pattern around the range of 4700–4800 USD, a classic bear, which suggested exhaustion of the rush up. The rejection of this zone brought ETH closer to the 50-day movable medium (blue), which previously acted as powerful support during the rally. The decisive closure below this line can open the door to a deeper return to the 200-day movable medium (red), currently set up near $ 2,3200 USD.

Despite the current weakness, ETH remains to a greater extent when it is viewed from the lowest level of July, nearly USD 2,200. This reflection established a powerful stubborn structure and as long as ETH lasts above the region 3500–3600 USD, long -term perspectives remain constructive. For now, bulls must recover USD 4,200 to recover the rush, while the lack of current levels can speed up the pressure on sale and test deeper support during the upcoming sessions.

Recommended photo from Dall-E, Tradingview chart

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