Heres Why Ethereum Bulls Are Gearing For New Rally
Ethereum holders are looking forward to a positive market following a surge in open interest positions. This comes after the asset underperformed compared to other assets in previous months as sentiments plunged. ETH price hovers above $2,600, plummeting 0.5% in the last 24 hours, with trading volumes taking a similar trajectory.
Ethereum Bulls Look To Open Interest
Recent activities in the crypto market have sparked excitement in altcoin holders. A new on-chain analysis shows an increase in open interest, sparking optimism among Ethereum holders. Open interests stand at $9.6 billion, a 28.5% surge from August numbers, which saw $7 billion.
Analysts at CryptoQuant opine that the surge is largely driven by upward market sentiment as Bitcoin regained $67K. Despite this, ETH failed to attract much of the inflows being outperformed by Bitcoin, Solana, and other assets. In June, open interest figures stood at $14 billion, showing a generally reduced sentiment from the previous high.
At present, Ethereum has a unified configuration between open interest and the Relative Strength Index (RSI). The RSI is at 61, indicating that quick and short corrections may bring the price, leverage, and RSI back into balance. The convergence of the highest lows in the RSI suggests a potential for a less pronounced correction, estimated to be between 7% and 9%. This scenario favors long positions, with traders patiently waiting for a market rebound to confirm new highs and higher lows.
Can ETH Soar With Wider Growth?
The ETH price stands at $2,607, which market commentators describe as underperforming compared to previous projections. The wider market rally has marked gains in Solana and Bitcoin, while Ethereum posts slow progress. Specifically, ETH has underperformed since the launch of spot ETFs in the United States. Solana also recorded more inflows into its institutional products before the ETF launch.
After the launch of spot Bitcoin ETFs, the assets price tapped an all-time high above $73,000. Going forward, industry watchers have pointed to the United States elections as the next bull driver for the market. While most attention is on Bitcoin, ETH and other altcoins can surge on the heels of wider market growth. Global cuts in policy rates are also tipped to attract inflows to ETH as funds move to risky assets.
Read more: https://zycrypto.com/heres-why-ethereum-bulls-are-gearing-for-new-rally/
Text source: ZyCrypto
