Ether hits $2.6K as metrics suggest it’s in 'late stages’ of correction

A recent increase in open interest and a “positive” taker buy-sell ratio have led a #CryptoAnalyst to believe that Ether’s prolonged correction may be nearing its end.

Ether, currently priced at $2,660, has experienced a 13% drop below the $3,000 mark since early August. However, two on-chain metrics suggest that this correction could soon be over.

In an August 19 report, CryptoQuant analyst Burak Kesmeci highlighted the positive movement in the taker buy-sell ratio and rising open interest (OI) as signs that Ether may regain strength.

The taker buy-sell ratio, which measures the ratio of buyers to sellers of Ether across major exchanges, has turned positive. According to CoinGlass data, while the 24-hour period shows a slight edge for short-sellers, the recent 12-hour period indicates a positive shift with 50.37% of positions being long.

At the time of writing, Ether is trading at $2,679, down 23.57% since July 23, as per CoinMarketCap data.

As of August 19, Ether's open interest stands at $10.69 billion, reflecting a 10% increase from the previous day. Kesmeci notes that for Ether to see significant upward movement, leveraged traders will need to re-enter the market. Typically, futures traders become more confident in taking positions when asset prices rise.

In March, when Ether reached its year-to-date high of $4,066, open interest was $13.67 billion. During a subsequent retest of those levels in June at $3,800, open interest climbed above $15 billion, signaling a likely market correction, which indeed occurred.

Despite the launch of the first US-based Ether exchange-traded funds (ETFs) on July 23, Ether’s price has not benefited significantly. The ETFs have seen $434 million in net outflows since their launch, contributing to additional selling pressure. This is reminiscent of Bitcoin’s initial response to its spot ETF launch, where Bitcoin’s price fell by about 15% in the first 28 days before recovering to its launch level of $69,000.

Source - cointelegraph.com