Ethereum price prediction: Buy Or Sell This Summer?
Ethereum’s [ETH] supply has become inflationary, as the general market decline in the last month has decreased user activity on the network. At press time, ETH exchanged hands at $3,173. Impacted by the general market decline in the last month, the coin’s value dropped by 5% during that period, according to CoinMarketCap’s data.However, despite the recent market headwinds, ETH’s 50-day moving average (MA), which initiated a golden cross when the bull market rally began in October 2023, still lies above its 200-day MA on a weekly chart.
In ETH’s derivatives market, its futures open interest reached a year-to-date peak of $15 billion on 9th April and has since declined by 33%, per Coinglass data. As of this writing, the coin’s futures open interest was $10 billion.
This decline signaled a fall in trading activity in ETH’s futures market. When an asset’s open interest declines in this manner, it means that market participants are closing out their positions without opening new ones.