Ethereum’s rebound this time around may have more potential than many people expect.
On November 4, $ETH recovered from its previous decline, moving back above $2,300 earlier in the day.
Notably, ETH’s open interest in futures contracts rose by about 4.2% that day, while BTC’s increased by just 1.6%. Meanwhile, trading volumes for both rose significantly.
This means more capital was used to reestablish futures positions as ETH rebounded.
However, rising open interest also indicates that leverage is building up, so it shouldn’t be interpreted as entirely new buying.
For now, I’m inclined to remain bullish on ETH’s rebound, with $2,400 as the key level to watch in the short term.
If it can reclaim and hold above $2,400, the next target could be $2,500.
But if BTC weakens again and ETH falls back below $2,250, we should be alert to the possibility that this rebound will return to the trading range.
On November 4, $ETH recovered from its previous decline, moving back above $2,300 earlier in the day.
Notably, ETH’s open interest in futures contracts rose by about 4.2% that day, while BTC’s increased by just 1.6%. Meanwhile, trading volumes for both rose significantly.
This means more capital was used to reestablish futures positions as ETH rebounded.
However, rising open interest also indicates that leverage is building up, so it shouldn’t be interpreted as entirely new buying.
For now, I’m inclined to remain bullish on ETH’s rebound, with $2,400 as the key level to watch in the short term.
If it can reclaim and hold above $2,400, the next target could be $2,500.
But if BTC weakens again and ETH falls back below $2,250, we should be alert to the possibility that this rebound will return to the trading range.