Ethereum Open Interest, RSI Hit Multi-Month High – Is $3,000 Close?

• Ethereum hits an eight-week high as the RSI shows increasing buying pressure.
• Open interest of $14 billion shows increased participation in the market by derivatives traders.

Ethereum (ETH) At press time, shares were trading at an 8-week high of $2,735 after gaining nearly 4% in 24 hours. According to CoinMarketCaptrading volumes increased by more than 100%, indicating growing market interest.

Thanks to this rise, ETH recorded the highest number of short liquidations in the cryptocurrency market. At the time of publication, over $23 million worth of ETH short positions had been wiped out. coin glass.

A large number of short liquidations is a bullish sign because it indicates that short sellers are turning into buyers looking to cover their positions. A look at Ethereum’s one-day chart suggests that these bullish trends may continue.

Ethereum Shows Bullish Signs

ETH overturned the 100-day exponential moving average (EMA) at $2,685 as the uptrend gained momentum. The uptrend later encountered resistance as ETH approached the 200-day EMA.

The 200-day EMA, currently around $2,800, is a psychological level for traders. If ETH makes a decisive break above this resistance, the altcoin will enter a long-term bullish trend that could lead to a rally towards the 1.618 Fibonacci level above $3,000.

Source: Tradingview

Technical indicators suggest that a break above the 200-day EMA is likely. Chaikin Money Flow (CMF) turned positive for the first time in nearly two weeks, showing that more capital is flowing into ETH.

Additionally, the Relative Strength Index (RSI) reached higher highs and reached its highest level since June, showing strong buying pressure.

Source: Tradingview

Despite the influx of buyers, Ethereum’s RSI of 66 shows that it is not overbought. This suggests that there is room for growth.

Sharp rise in open interest and leverage ratios

Open interest in Ethereum rose to its highest level since August, Coinglass data shows. At the time of publication, this figure stood at $14 billion, signaling that a large number of market participants and capital are flowing into ETH.

Source: Coinglass

An increase in open interest is usually bullish if traders go long. However, this increase may also lead to price volatility.

Ethereum’s implied leverage ratio is approaching a three-month high, suggesting an influx of debt capital. If ETH makes sudden moves, it could result in a large number of forced liquidations causing volatility.

Source: CryptoQuant

Ethereum wallets in profit

Ethereum’s recent successes have also led to a surge in in-money (profit) wallets. At the time of publication, 69% of all ETH addresses were profitable, representing a 6% increase over the past seven days.

Source: IntoTheBlock

Read the Ethereum (ETH) price forecast for 2024-2025.

On the other hand, at the time of publication, wallet losses amounted to 35 million addresses, which is a noticeable decrease from 42 million addresses in just one week.

As more Ethereum wallets become profitable, this could lead to positive sentiment towards ETH.