Ethereum (ETH) has recently experienced a significant decrease, losing over half of its value. The ongoing selling pressure raises concerns about whether ETH can maintain its next demand zones or face further decline. The Open Interest (OI) indicator can offer insights into investor sentiment and market positions. A notable drop in OI and Ethereum price indicates market deleveraging. Historically, whenever OI has increased and then suddenly decreased, Ethereum’s price has suffered further drops. The recent decrease in OI coincided with breaking the psychological support at $2,000 and a price drop to the $1,800 range. Traders seem to have closed their positions amid current uncertainty. For an uptrend to start, OI must rise along with the price to signal new capital inflows into buy positions; otherwise, further decline is likely. The daily ETH chart shows a clear downtrend, forming lower highs and lows, with the demand zone of $2,400 to $2,500 lost. Dropping below the 200-day moving average also signals a bearish trend. If Ethereum corrects to the next demand range of $1,600 to $1,700, a return to an upward trajectory can be expected. In such a scenario, Ethereum will face resistances at $2,500 and $3,200. If the next demand zone is breached, a target of $1,300 for Ethereum is plausible. Visit the realtime digital assets price page to monitor token and cryptocurrency prices live.
