Ethereum Price Dips as 400 Million Dollars of Open Interest Gets Wiped Out

Crypto News- Ethereum’s price has surged past the $1900 mark for the first time since August, registering a remarkable 16% gain in just a month. This surge comes as Bitcoin takes a brief pause, hovering around the $35K mark, allowing altcoins to steal the spotlight. The overall market sentiment remains optimistic, yet Ethereum’s price faces some pressure due to a massive wipeout of millions in open interest (OI) following a significant increase last week.

Ethereum Price Dips as 400 Million Dollars of Open Interest Gets Wiped Out

Around $400 million in open interest got wiped out in a single day, erasing most of the gains accumulated over the past few days. On-chain crypto analyst Maartunn, who had previously noted the sharp increase in open interest, expressed concerns about impending volatility. Traders are keeping their eyes on ETH, hoping it can reach the $2000 milestone while Bitcoin maintains its position around $35K.

Maartunn’s observation on November 6 highlighted the rapid loss of $400 million in open interest in a single day, which has put substantial downward pressure on ETH’s price. While market sentiment remains bullish, there’s a possibility of a retracement, especially given the increased movement of ETH to crypto exchanges by large holders during the altcoins’ recovery phase. Although a whale selloff is often seen as a bullish sign, it’s crucial to monitor trading volumes to determine whether a correction is imminent.

CoinGape Markets reported the emergence of a bearish breakdown channel pattern, which could potentially lead to a 16% price drop. Ethereum has faced significant volatility around the $1830 level, proving to be a strong resistance point.

Prominent crypto analyst Credible Crypto believes the chart is currently in good shape, with the $1400-$1500 range serving as a high-timeframe buy zone and a price bottom. He anticipates that ETH’s price won’t dip below $1500 again and foresees a rise to $1700 before a potential move towards the $2000 mark. Over the last 24 hours, ETH’s price has experienced a 1% dip, with the current price at $1,877. The 24-hour price range has fluctuated between $1,863 and $1,911, and trading volume has surged by 42% in the past day.