For over a week now, Ethereum has been struggling to hold the $1600 support level. As of now, the second largest market capitalization is holding steady, but for how long?
Open Interest Plummeting
Ethereum is at a crossroads, struggling to stay above $1600. Key indicators reveal the challenge ahead. Derivatives generally provide an initial overview. In this market, Bitcoin’s open interest has fallen to $4.86 billion, comparable to the Silicon Valley Bank bankruptcy and ensuing panic. Open Interest, the total number of open, unsettled futures contracts on a given market, is a vital trading indicator, gauging market liquidity and investor interest or commitment to a specific asset. For Ethereum, around $450 million has been wiped off the futures markets in the first four days of September. This reduced interest could also affect demand on the ETH spot market.
Are Long-Term Investors in Panic?
On the spot market, the situation is not much better. On-chain data shows that many long-term investors have sold off their holdings in the past week. To quantify this phenomenon, the Mean Coin Age, which measures the average age of tokens, is interesting. It was 47.8 on August 28th, but dropped to 45.54 on September 4th, a 5% decrease indicating significant selling pressure. The Mean Coin Age of Ethereum has seen a sharp decline, suggesting that many long-held tokens have been moved or sold. (Source: Santiment).
Upcoming Data Dump?
The current on-chain data indicates a potential dump in Ethereum’s price. The $1600 support level is currently being tested, as shown by the In/Out of Money indicator, which reflects the distribution of entry prices among holders. However, there are 2.5 million addresses that purchased 3.12 million tokens at a minimum price of $1581. These holders could provide strong support if they buy more ETH to cover their positions. On the other hand, if they do not, Ethereum’s price could drop to around $1500.
A captivating pre-sale!
The upcoming days are crucial for Ethereum, and one project that has caught the attention of investors is yPredict. It is an AI-driven trading ecosystem that aims to provide traders and investors with the tools to maximize their gains. The platform has been developed with advanced prediction algorithms and data analysis by highly skilled AI quants and developers. If you are interested in this price analysis and prediction solution, yPredict has already released a beta version, and you can sign up for the waiting list. Additionally, yPredict is creating an exclusive marketplace where machine learning specialists can offer their predictive models through subscription services. The project’s pre-sale is still ongoing, allowing early investment in the native token, YPRED. The pre-sale is happening in successive phases, with the token’s price increasing at each stage. As of now, the project is in its 7th phase, with a unit price of $0.10. The pre-sale has already raised over $3.71 million, indicating its success. It’s important to note that this article does not provide investment advice, and the information should not be used as a basis for financial decisions. Cryptocurrency investments involve risks and can lead to significant losses. Only invest what you can afford to lose and conduct your own research before making any investment decisions. Source: BeinCrypto.