Ethereum (ETH) Price: Open Interest Falls 50% Since August While Traders Wait for Breakout

TLDR

• Ethereum open interest has dropped approximately 50% since August, indicating widespread position closures and reduced leverage in the market.
• Binance taker sell volume has fallen to its lowest level since May, showing that aggressive selling pressure has cooled.
• ETH is trading in a range between $2,800 and $3,300, forming a contracting triangle pattern on daily charts.
• The 200-day EMA near $3,410 continues to act as resistance, with repeated rejections keeping the price capped.
• A breakout above $3,200-$3,250 could push ETH toward $4,200, while a break below $2,900 may expose prices to $2,500.

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Ethereum is trading in a quieter market environment after months of leverage reduction. Open interest across major exchanges has fallen to roughly half of what it was in August, according to analytics firm Alpharectal.

Open interest measures the total value of active futures and perpetual contracts. When it rises, leverage builds up in the system. When it falls, traders are closing positions and overall market risk decreases.

Ethereum (ETH) Price

Binance currently holds the largest share of ETH open interest at approximately $7.6 billion. Gate.io and HTX follow with $3.72 billion and $3.12 billion respectively. The reduction in leverage often lessens the chance of sudden price swings caused by mass liquidations.

Lower open interest typically limits short-term volatility. However, it can also set the stage for larger price movements once direction becomes clear. Past market cycles have shown similar resets appearing before either further declines or more stable recovery phases.

Selling Pressure Eases on Binance

Data from CryptoQuant contributor CryptoOnchain shows that Ethereum taker sell volume on Binance has dropped to its lowest level since May. Taker sell volume tracks how much ETH is being sold at market price, reflecting aggressive selling activity.

The 30-day average has fallen to about $6.3 billion. This suggests fewer traders are rushing to exit positions compared to the recent selloff period. However, it does not indicate that buyers have taken control of price action.

This type of market setup often leads to price stabilization rather than immediate rallies. For a stronger upside case to develop, buyers would need to return with higher volume and rising open interest.

Price Consolidates in Triangle Pattern

The daily chart shows Ethereum stuck in a downtrend marked by lower highs and lower lows. After a sharp drop, the price has moved sideways between roughly $2,800 and $3,300. This range is acting as a decision zone.

According to analyst Dami-Defi, the recent structure suggests that as long as higher lows around $2,900 hold, the uptrend remains technically intact. The $2,990 area currently serves as a pivot point for price action.

The 200-day exponential moving average near $3,410 has rejected multiple attempts to break higher. The short-term moving average continues to slope lower and sits above the current price, maintaining pressure on any bounce attempts.

Bollinger Bands have tightened after expanding during the selloff. This typically occurs when volatility fades and the market pauses before its next move. Volume data shows heavy selling during the breakdown, but recent sessions display lighter and mixed volume.

The relative strength index sits slightly below 50 after recovering from oversold levels. This does not confirm a trend change but allows room for a potential rebound. MACD and short-term momentum indicators show a slight positive tilt, while longer-term moving averages remain negative.

Key Levels to Watch

A daily close above the moving average near $3,300-$3,500 with stronger volume and RSI holding above 50 would improve the bullish case. A decisive break above the triangle top near $3,200-$3,250 and the 200-day EMA could target $4,200, according to analyst Merlijn the Trader.

On the downside, a clean break below the $2,800-$3,000 support zone could reopen the path for another selloff. If ETH breaks below the rising support line, it may move toward the mid-$2,500s, which represents the next large historical demand zone.

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