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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ETH’s recent pump eased, falling towards $1700 at the time of writing.
- Open interest rose to $5 billion, last seen on Aug. 18, but later fell.
After an impressive pump on August 29, Ethereum [ETH] struggling to stay above $1700. The pump followed Grayscale’s to win to SEC, but it looked like buyer exhaustion had crept in.
Is your wallet green? look at the ETH Profit Calculator
In the same way, Bitcoin [BTC] faced a $28,000 rejection and struggled to stay above $27,000. So, a BTC break below $27,000 could complicate things for ETH bulls.
In a new development, on-chain facts showed that long-term holders ETH outperformed BTC by as much as 40 million. The milestone was due to ETH’s many use cases.
Will Bulls Defend $1700?
Source: ETH/USDT on TradingView
ETH’s price dump around mid-August eased with a weekly bullish order (OB) from $1626 – $1770 (white). The Aug. 29 pump led to a recent new high at $1745, turning the higher timeframe market structure into a bullish bias.
But the price rejection at the May lows caused ETH to retrace as of the time of writing. If the $1700 bursts, ETH could depreciate towards $1640 or $1627 in the medium term. But a further drop below the weekly bullish OB could make a $1,500 retest feasible.
On the upside, bulls may gain an edge if ETH moves above $1745. If so, the next goal could be $1800.
Meanwhile, the RSI registered a decline after climbing above 50, indicating that buying pressure has eased. In addition, the OBV has been showing lower highs since mid-August, demonstrating a decline in demand over the same period.
How many Worth 1,10,100 ETHs today?
Open interest eased
Source: Coinalyse
The August 29 price hike led to a $5 billion increase in open interest rates, last seen on August 18. But the measure fell below $5 billion at the time of writing, suggesting a slight drop in demand in the derivatives segment.
On the liquidation side, more longs ($2.1 million) have been smashed compared to shorts ($736k) in the last 24 hours before press time, according to Coinalyze facts showed. The above insight might indicate that USD 1745 is a stubborn resistance in the medium term.