ethereum Correction Enters 'Late Stages' as Metrics Point to Bottom
ethereum, one of the leading cryptocurrencies in the market, is showing signs of nearing a local bottom as various on-chain indicators hint at the ‘late stages’ of the correction that pushed ethereum below the $3,000 mark. According to a recent report from CryptoQuant, the buy-sell ratio and open interest (OI) are indicating that buyers are regaining strength in Ether.
The taker buy-sell ratio, which calculates the ratio of buyers to sellers of Ether across major cryptocurrency exchanges, has turned positive again. CoinGlass data also shows that despite a slight edge for short-sellers of Ether in the larger 24-hour period, the most recent 12-hour period has seen a shift towards long positions, with 51.21% of positions being long.
Open Interest Mirrors Past Highs
Additionally, the total open interest (OI) for ethereum futures has surpassed $10.69 billion, marking a 10% increase since the previous day. However, the author of the report, Burak Kesmeci, highlighted that for a significant upward movement in price, leveraged players will need to re-enter the market to amplify positive price movements.
Comparing past OI levels during ethereum's peak performances, such as when it reached its year-to-date high of $4,066 in March or retested those levels in June at $3,800, Kesmeci pointed out that corrections usually follow when OI reaches significant levels.
Etherium ETFs Remain Complacent
Despite the launch of the first US-based spot Ether exchange-traded funds (ETFs) in July, Ether's price hasn't seen a significant boost. In fact, the ETFs may have contributed to the recent decline in Ether's price, with cumulative net outflows totaling $434 million since their launch.
This trend is similar to bitcoin's performance when spot bitcoin ETFs were introduced, resulting in a temporary price drop before experiencing a rebound. Ether's price trajectory could follow a similar pattern as markets adjust to the introduction of ETFs.
However, the current state of Ether ETFs shows a stagnant trend with significant outflows, swinging back negative after a brief positive spell. Data from Farside indicates that accumulation has tapered off, and the momentum from the first net-positive week for these ETFs has subsided.
Overall, the on-chain metrics and ETF performance suggest that ethereum could be on the verge of a turnaround. As buyers strengthen their positions and market dynamics adjust to the presence of ETFs, the outlook for ethereum's price looks promising in the near future.
