On Friday, Ether (ETH) quotations again exceeded $2,000, and its gains deepened after the American Consumer Price Index (CPI) turned out to be colder than expected.

The recovery led ETH/USD to its first bullish closing weekly candle since mid-January, fueling speculation of a rally towards $2,500.

Key takeaways:

• Interest in open Ether futures fell by 80 million ETH in 30 days and funding rates hit a three-year low, indicating a weakening bearish trend.

• ETH price has established powerful support around $2,000, a level that must hold to ensure a rebound.

Open interest in ether drops by 80 million ETH

CryptoQuanta data can be seen The value of open Ether (OI) futures contracts on all major exchanges has fallen by over 80 million ETH in the last 30 days.

Binance, the world’s largest cryptocurrency exchange by trading volume, saw its largest decline of approximately 40 million ETH (50%) over the last 30 days.

Related: ETH ETF holders in a “worse situation” than their BTC ETF counterparts as the cryptocurrency market searches for a bottom

Ether OI on the Gate exchange dropped by over 20 million ETH (25%), while Bybit and OKX saw declines of 8.5 million ETH and 6.8 million ETH, respectively. In total, the four main platforms saw a total decline of approximately 75 million ETH, while other platforms accounted for the remaining five million ETH, confirming that this phenomenon is widespread and not confined to a single exchange.

This suggests that leveraged investors are “reducing their exposure rather than opening new positions,” according to CryptoQuant analyst Arab Chain. he said in Quicktake analysis.

This significant decline in OI in the face of falling prices could “be seen as clearing out weaker positions, thereby reducing the likelihood of subsequent sudden forced liquidations,” the analyst said, adding:

“This environment could pave the way for a period of relative stability or the creation of a more solid price base for Ethereum in the near future.”

Ether futures funding rates on Binance have fallen deep to negative -0.006, marking the lowest value recorded since early December 2022.

“This indicates that bearish sentiment has reached an extreme peak not seen in the last three years” – CryptoOnchain, CryptoQuant contributor he said in Thursday’s Quicktake analysis.

Historically, extremely negative funding rates at major price support levels have often preceded brief squeezes.

“When the crowd is so confident that prices will fall further, the market tends to move in the opposite direction to wipe out the late bears,” the analyst said, adding:

“Current data suggests we may be seeing a classic capitulation, mirroring the late 2022 bottom formation, potentially setting the stage for a sharp recovery.”

As Cointelegraph reports, growing Ether network activity and the growing influx of institutional investors are significant factors favoring any near-term price increases in ETH.

ETH Price Technicals: Bulls need to keep Ether above $2,000

The ETH/USD pair broke out of the falling wedge on the four-hour chart and was trading at $2,050 at the time of writing.

The measured target of the falling wedge, calculated by adding the maximum height of the wedge to the breakout point at $1,950, is $2,150.

Higher up, the price may move higher to retest the 100-period straightforward moving average (SMA) at $2,260 and later towards $2,500.

On the other hand, the key area to hold is the psychological level of $2,000, covered by the 50-period SMA, as shown in the chart below.

Glassnode’s cost-based distribution heatmap shows the recently formed significant support area of ​​$1,880 to $1,900 where investors purchased approximately 1.3 million ETH.

As Cointelegraph reports, Ether accumulation addresses saw an enhance in daily inflows as ETH dropped below $2,000 last week, signaling powerful investor confidence in its long-term potential.