Ethereum climbed back above $2,000 after a softer-than-expected rally CPI in the USA print, and the move has investors and analysts wondering whether the worst is behind the coin or if it is a ephemeral aid boost.
Reports tell the future open interest has fallen sharply over the past 30 days, funding rates have gone deep into negative territory, and some on-chain indicators point to a concentrated zone of support below current prices.
The open decline in interest raises questions
According to CryptoQuantwhat caught attention was the main figure showing a decrease in the number of open transactions on main platforms by 80 million ETH. This number, if taken literally, would be huge. This suggests that immense positions were closed rather than modern ones being opened.
However, the scale of change also requires analysis; reporting errors or dollar value comparisons incorrectly marked as ETH it can happen. Despite this, there has been a significant reduction in futures exposure on exchanges including Binance, Gate, Bybit and OKX, and this seems real.
Funding rates and crowds
Funding rates on some platforms are reaching levels not seen in about three years. When investors pay to hold miniature positions, it signals a robust bearish belief.
Such extremes are reportedly followed by a edged reversal in trend as the crowd can become one-sided, leading to a quick reversal as market sentiment changes.
This was seen in delayed 2022 when there was an extreme shorting followed by a quick reversal. However, this does not mean that this will happen this time as markets may remain one-sided for longer than expected.
Support zones and technical goals
Glassnode company data in the chain reveals a significant cost area between $1,880 and $1,900 where approximately 1.3 million ETH was traded.
The $2,000 value acts as a psychological anchor and is reinforced by the moving average clusters. A breakout from the recent falling wedge formation points to an initially measured target near $2,150, a ceiling that would be tested before higher resistance occurs near $2,260 and then $2,500.
These levels are uncertain; the broader market tone and Bitcoin’s direction will influence whether these are achieved.
Reduced open interest lowers the risk of cascading liquidations for now, which could limit intraday volatility. At the same time, low funding rates show that bearish bets are still busy and could be reduced if dynamics change.
Reports say that accumulation portfolios increased inflows as prices fell, indicating the long-term belief of some investors.
Featured image from Unsplash, chart from TradingView
