Ethereum price closed trading below $2,000 on March 22, tumbling 5% from weekly timeframe highs the $2,067 record 24 hours prior. Disinterest among short-term traders puts ETH price as risk of another pull back towards $1,850.
Ethereum (ETH) fails to hold $2,000 support despite Trump’s speech
Ethereum (ETH) price showed promising price action earlier this week, but latest price action suggests the optimism may have already petered out in less than 24 hours.
Ethereum price rallied 10% at the start of the week, rising from $1760, to hit $2,065 riding on positive tailwinds for successful deployment of its Hoodi update.
Trump’s appearance at Blockwork’s Digital Asset Summit, boosted market momentum on Thursday, driving ETH price above the $2,067 mark on Friday, according CoinmarketCap data.
Recent market trends show the majority of ETH bull traders failed to hold the gains for up-to 24 hours.
Following Trump’s speech, Ethereum opened trading on Friday above the $2,000 for the first time in nearly two-weeks dating back to March 9.
However, ETH bulls failed to build on the rebound, as ETH price rapidly plunged below the $2,000 mark and closed for the day around $1,965.
However, as seen in the chart above, the persistent decline in ETH trading volumes suggests bears could struggle to drive major downward moves in the coming trading session.
Ethereum Derivatives Markets Analysis: Open Interest Dips Below $20 Billion but Multiple Upside Signals Remain
Ethereum’s derivatives market reflects mixed sentiment, with open interest holding at $19.94B, barely above the $20B threshold, despite a 26.7% drop in trading volume to $22.80B.
Options open interest has also fallen 5.45% to $5.88B, indicating instutional speculators are also scaling down their exposure to Ethereum.
Beyond that, Conversely, Liquidation data also provides key insights into recent negative tilt in mark sentiment. Over the past 24 hours, total rekt positions reached $24.63M, with $17.18M in long liquidations and $7.45M in short liquidations, suggesting that bullish traders were over-leveraged before recent price correction.
Additionally, $3.47M was wiped in the past 4 hours, further reflecting the market’s vulnerability to sudden price swings.
Ethereum price outlook today: Failure to Hold $1,850 Exposes ETH to More Downside Risks
ETH price is trading just above the $1,900 mark at press time. However, Ethereum price forecast signals on derivatives trends suggest caution is warranted if ETH stagnates near $2,000.
The Coinglass derivatives chart shows ETH/USDT long/short ratios on Binance (3.42) and OKX (3.44) show bullish positioning from traders, with Binance’s top traders maintaining a 4.16 long/short ratio on accounts. This suggest that traders may be entering fresh bullish positions after the recent profit-taking phase that ensued after Trump’s speech on Thursday.
A prolonged lack of directional momentum could deter speculative traders, and prompt existing holders to close ETH positions in search of more volatile assets. In this scenario, further declines in market participation could drive open interest below $20B, weakening key support levels around $1,850, and exposing ETH to potential downside risks.
The post Ethereum Price Today: Bull Risk $1,850 reversal as ETH Open Interest Drops Below $20 Billion appeared first on CoinGape.
