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| Last updated: November 12th, 2023
- ETH fluctuated rapidly between $1,900 and $1,800
- Nearly $400 million in Open Interest (OI) was wiped out as the price dipped below $1,900
The crypto-market had a volatile weekend, with Ethereum [ETH] encountering a fair share of its own ups and downs.
ETH breaches $1,900, slips later
The king of altcoins hit the $1,900-level for the first time since July, according to CoinMarketCap. This, after the crypto oscillated rapidly between $1,900 and $1,800 on Sunday.
However, it failed to hold on to this psychologically important level. ETH descended steadily from $1,900, with the crypto priced at $1,879 at press time.
Source: CoinMarketCap
That being said, Ethereum has made strong advances of late. In doing so, it outperformed Bitcoin [BTC] in weekly gains. While the king coin appreciated by 1.98% in the last seven days, ETH hiked by more than 5%.
Open Interest drops sharply
The bout in volatility shook ETH’s derivatives market. Nearly $400 million in Open Interest (OI) was wiped out as the price dipped below $1,900, according to on-chain analyst Maartunn.
The dip followed sharp inflows, to the tune of more than $600 million, into outstanding ETH Futures contracts in the last week.
Source: Coinglass
The trend was aptly reflected in the trajectory of Coinglass’s Long/Short Ratio as well. Number of individuals going long on ETH started to increase as the price moved north. However, as the price started to bend, dominance of bearish-leveraged traders started to rise, resulting in higher shorts vis à vis longs.
Source: Coinglass
Whales still bullish on ETH
However, the change in structure was not a big matter of concern. Most of the whales still had a higher long exposure than retail investors, as per AMBCrypto’s examination of Hyblock Capital’s data.
While nothing in trading can be 100% certain, the behavior of whale investors is seen as a more accurate predictor of the market’s next direction. Hence, ETH could show bullish tendencies in the days to come.
Source: Hyblock Capital
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Additionally, ETH investors are in a mood to buy more. This is evidenced by the readings of the Fear and Greed Index. As the sentiment is yet to reach a state of extreme greed, one can safely rule out the possibility of a price correction.
