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Category: Forex News

Ethereum price forecast: $4k rebound looms as traders defend $13B contracts

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When price declines faster than open interest, strategic investors could consider is bullish for two key reasons.

Firstly, a relatively smaller drop in open interest suggests that investors are maintaining their positions rather than exiting the market entirely.

This resilience in open interest indicates that a significant portion of investors remains committed to Ethereum, potentially viewing the price decline as a temporary setback rather than a long-term trend reversal.

Also, it suggests that while some traders may be selling their positions, others are entering new positions or increasing their exposure to Ethereum.

This renewed buying interest amidst price weakness may indicate a potential reversal of the downward trend.

As investors now perceive the lower ETH prices as attractive buying opportunities to enter new positions, this could set ETH price for some volatile price action in the week ahead.

ETH price forecast: $4,000 Rebound Ahead?

As investors now perceive the lower ETH prices as attractive buying opportunities to enter new positions, this could set Ethereum price for a possible volatile price upswing toward $4,000 in the week ahead.

In confirmation of this bullish stance, IntoTheBlock’s In/Out of the Money indicator shows that ETH is unlikely to fall below $3,300 in the short-term.

The chart below shows a cluster of 2.14 million existing holders had bought 1.32 million ETH at the average price of $3,300. Having spent over $3.5 billion to acquire those holdings, that support cluster could be daunting for the fatigued bears.


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