$400 Million Worth of Open Interest Get Wiped Out From Ethereum

In the past month, the price of the super popular crypto coin Ethereum has gone over 16%. This means that for the first time since August, it managed to surpass $1,900. The altcoins started to move since Bitcoin rests at around $35,000.

While the market remains positive for Ethereum, the coin’s value came under pressure. This is due to the $400 million worth of open interest getting wiped out from the altcoin, following an increase last week.

Millions Worth of Open Interest Disappear in Ethereum

Over the weekend, an on-chain crypto analyst known as Maartunn stated that Ethereum had caught his attention. He noted that the Open Interest managed to get an increase of more than $600 million in the past few days.

Maartunn then finished his statement by saying that the volatility will also increase very soon. Now, investors are expecting Ethereum to get to the $2,000 mark, as Bitcoin sits strong at around $35,000.

According to Maartunn’s analysis following the weekend, it is believed that $400 million worth of OI vanished in a single day. He also highlighted that this erased all the gains in OI that featured in the past couple of days.

Because of that, the price of this cryptocurrency remained under pressure for a correction or retracement. However, the probability of correction is low as a result of the positive market sentiment. Yet, the possibility of a pullback is still high.

If you aren’t familiar with OI, it is a term that people use in options and futures markets. It shows the open positions of a single party in a futures contract. Now, the open positions reveal investor’s commitment to a specific contract or the direction of their position.

Analysing Ethereum’s Price

In the meantime, the whales are stepping up and withdrawing their ETH from crypto exchanges. This comes as a result of the overall recovery in altcoins. Now, this is generally considered to be a sign of a rising trend.

However, we should closely monitor the trading volume to ensure that there are no corrections. According to the daily chart of Ethereum, the price of this coin is moving in a descending channel formation.

This shows us that there is a potential drop of 16% if the formation goes through. Observing the high volatility around the $1,800 level gives as prove of a strong resistance level.

According to the well-known crypto analyst Credible Crypto, the price chart of Ethereum is extremely clean. Their predictions state that the range of $1,400 – $1,500 is a buying zone on higher timeframes. This means that the investors should look at it as a support zone or bottom area.

This experienced analyst also believes that the price of ETH won’t fall below $1,500 unless there is some kind of major development. Also, it is projected that Ethereum will first test $1,700 before reaching $2,000.

Based on the latest data, this altcoin has risen by 0.25% in the past 24 hours. It is also trading at $1,895 and it features an increase of 32.20% in volume in the past 24 hours.