Ethereum has been the worst-performing asset compared to its direct competitors since the start of the bull market, the launch of the ETF, and a decrease in demand.
Currently, the open interest stands at $9.6 billion, which is a 28.57% increase from $7 billion in August of this year. However, this amount is still far from the $13 billion observed in June, reflecting the market's pessimistic sentiment. This increase in open interest is driven by expectations of an upward rally and a subsequent rise in demand. Additionally, rates cuts by the Federal Reserve may lead to a migration towards DeFi protocols, alongside a narrative focusing on the future of tokenization on the Ethereum blockchain.
At present, Ethereum has a unified configuration between open interest and the Relative Strength Index (RSI). The RSI is at 61, indicating that quick and short corrections may bring the price, leverage, and RSI back into balance.
The convergence of the highest lows in the RSI suggests a potential for a less pronounced correction, estimated to be between 7% and 9%. This scenario favors long positions, with traders patiently waiting for a market rebound to confirm new highs and higher lows.
Written by Percival
