Ethereum Price Prediction As Open Interest Hits $8B, $3,500 Coming In December?
Ethereum Price Prediction: Investor interest has continued to grow both in the spot and derivatives market. Ethereum (ETH) and Bitcoin (BTC) alongside other major cryptocurrencies Solana (ADA) and Cardano (ADA) consistently posted new 2023 highs.
There is enough evidence that this is the start of a bull market, which would likely see Ethereum rise to $3,500 possibly before the year-end.
Ethereum Price Prediction: ETH Blasts To $2,400, What’s Next?
Ethereum buyers are anxiously waiting for a breakout above resistance at $2,400, considering the region has been tested Friday but not broken. The largest smart contracts token increased by 1.1% in the last 24 hours to $2,352, contributing marginally to a 13.2% growth in seven days and 24.5% in 30 days, CoinGecko market data shows.
The technical outlook at the moment is solid bullish, considering the buy signal from the Moving Average Convergence Divergence (MACD) indicator. Traders are at liberty to continue betting on ETH longs, provided the blue MACD line holds above the red signal line.
Similarly, the momentum indicator should generally be moving higher above the neutral area, to reinforce the prevailing bullish thesis.
Although several factors may influence Ethereum price in December, including the Bitcoin spot exchange-traded fund (ETF) narrative, declines are likely to be minimal as the sell-side pressure weakens.
For now, it would be prudent for traders to watch out for two key levels; if the resistance at $2,400 gives in and support at $2,300 holds. The first scenario could spread FOMO across the market, with more holders buying in speculation for the next move to $3,000 and then to $3,550.
In the second scenario, Ethereum could retest support at $2,300 and springboard strongly with a comeback strong enough to blast through $2,400. However, the technical structure could change if a stronger correction pushes Ethereum price to retest $2,100 before making another recovery attempt.
Ethereum price is slightly overbought according to the Relative Strength Index (RSI) in the daily time frame. If bulls don’t present a stronger case, bears could overrule their reign for a correction to $2,100 and $2,000, respectively.
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Ethereum Open Interest Soars To $8B
The open interest (OI), which monitors the flow of money in and out of a futures or options market, has been growing consistently since June 2022, according to Coinglass data.
As IO increases it suggests that new money is coming into the derivatives market than the money flowing out. Moreover, Ethereum price rising along with the OI, confirms a long-term bullish outlook.
The Ethereum open interest currently slightly below $8 billion is back at pre-Terra crash levels in 2022 and suggests the market is slowly easing into the bull run following a lengthy bear run.
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