Open interest indicates the total number of transactions.
If OI rises while the price rises, we can say that it supports the price, indicating a strong rise.
If open interest is increasing while the price is falling, we can infer a strong decline.
Based on this, if the open interest is falling while the price is rising, it suggests that the price may soon reverse. Conversely, if open interest falls while the price falls, it indicates that a rise may soon begin.
With the approval of the ETH open interest ETF, open interest has risen to $12B, which seems to support the rise in price.
I added the EMA144 here, and we see that it acts as support and resistance.
When the price enters a bull trend, EMA144 provides the best long opportunities.
When the price enters a bear trend, we see that it offers the best selling points.
Summary: When we enter a bearish trend, moving above it is a selling opportunity. In a bullish trend, falling below it is a buying opportunity.
For now, we can expect the rise to continue until the positions are closed, but this alone does not make sense.
Written by XBTManager