Is the Ether Decline Coming to an End? Two On-Chain Indicators Signal Recovery
Two on-chain measures indicate that Ether’s 13% decline below the crucial $3,000 mark since early August may be coming to an end shortly. Burak Kesmeci, the author of CryptoQuant, suggested that Ether would soon recover by citing two well-known on-chain indicators: the taker-buy-sell ratio and open interest (OI). The taker-buy ratio, which determines the proportion of buyers to sellers of Ether across all significant cryptocurrency exchanges, is positive again, he said.
Buyers are starting to regain strength in Ether,
Kesmeci
Ether Long Positions Increase: Price Falls to $2,665, Bullish Expectations Strengthen
While the larger 24-hour period indicates a slight advantage for Ether short sellers, the most recent 12-hour period up to now has turned positive, with 50.37% of positions being long, according to CoinGlass statistics. According to CoinMarketCap data, Ether is currently trading at $2,665, down 23.75% from July 23. Leveraged participants will need to reenter the market in order for there to be a “significant upward movement in price,” according to Kesmeci. Future traders usually get more comfortable entering bets when the price of an asset rises.
- Ether OI, or the total amount of outstanding options contracts that traders hold at any given moment, is $10.69 billion as of August 19, up around 10% from August 18.
- OI was $13.67 billion on March 12, the day Ether hit its all-time high of $4,066 for the year. In the meantime, OI shot even higher above $15 billion when it hit those levels once more in June, at $3,800.
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