đ„đ„đ„ Is Ethereum Finally Over the Slump? These 2 On-Chain Metrics Suggests a Bullish Turn
Ethereum, the second-largest cryptocurrency by market cap, has been in an extended price correction, leaving investors and traders wondering when it will regain upward momentum.
A recent analysis by CryptoQuant's Burak Kesmeci suggests that Ethereum might be nearing the end of this correction phase, potentially setting the stage for a bullish turnaround.
Signs of a Reversal
- Kesmeciâs analysis shows that key metrics, including the Taker Buy Sell Ratio and Open Interest, suggest that leveraged positions have been liquidated and buyers are regaining control, hinting at a potential bullish reversal.
- The Taker Buy Sell Ratio, showing buyers outnumbering sellers, indicates rising demand and potential price growth. Kesmeci's analysis reveals Ethereum's ratio has recently turned positive, suggesting a shift towards buyer control and a possible recovery.
Examining Ethereum's Open Interest
- Open Interest (OI), another crucial metric highlighted by Kesmeci, represents the total number of open long and short positions in the market. High OI levels often signal an imminent significant price movement, as traders are heavily invested in the market's next direction.
- Kesmeci noted that in June 2024, when Ethereum's price reached $3,800, OI hit a record high of over $13 billion, signaling a likely market correction. Indeed, a correction followed, and on August 5, 2024âreferred to as "bloody Monday" due to events in JapanâOI dropped to $7 billion.
- Ethereum is currently trading at around $2,587. The drop in open interest and recent liquidation suggest market corrections are underway. Kesmeci believes that for a significant price rise, leveraged traders must re-enter the market. While buyers are showing signs of strength, itâs unclear if this will lead to a sustained rally or just a temporary rebound.
Source - newsbtc.com
