Ethereum To See Fresh Move Soon? What Futures Data Says

Ethereum’s open interest, which refers to the total number of derivative-related contracts open for Ethereum on all exchanges, has been trading at relatively low levels recently. This trend indicates a cooling down of activity within the futures market and suggests the potential for a fresh and decisive market movement in either direction. The recent plunge in open interest alongside the asset’s price was caused by long contract holders being washed out during the price drawdown. Now that the price has mostly consolidated sideways, the market appears poised for the resurgence of either long or short positions. Additionally, the funding rate for Ethereum has recently turned negative, indicating a bearish sentiment among derivative traders. However, since the market has historically moved against the majority opinion, this flip in funding rate could actually be a good sign for potential uptrends to start. As of now, Ethereum’s price has reached $3,200.