Ethereum Price Enters Buy Zone – Is A Revenge Rally In Progress?
Ethereum (ETH) fell 7.5% for the week after Bitcoin (BTC) and other major altcoins failed to recover.
However, one analyst believes that ETH's long-term market structure is high due to entering a key demand zone.
Ethereum remains in the “buy zone”.
Mando City, a Web3 specialist and independent trader, shared his thoughts with his 600K followers on X, indicating the importance of “patience” with Ethereum.
The trader said that Ethereum remains in the ‘buy zone' from a long-term investment perspective.
“When $ETH rises, it usually takes over the entire market, igniting altcoin runs and lifting the entire crypto ecosystem.”
Ethereum analysis chart by Mando CT. Source: X.com
Meanwhile, according to technical analyst Kyledoops from Crypto Banter, Ethereum exchange net flow to derivatives platforms increased by 96,000 ETH on October 24. Such significant flows can stimulate market activity, and historically, these events have resulted in volatile price movements. the market.
Ethereum exchange net flow on Derivatives exchanges chart. Source: X.com
In light of the recent floods, the analyst suggested;
“This latest increase could signal another wave of price corrections or significant market changes.”
ETH's aggregate open interest is at an annual high.
While Ethereum's price may not have a clear conviction, its derivatives market is very active. Data from VeloData shows that ETH's aggregated open interest (OI) reached a new annual high this month.
Combined open interest is the total number of long and short positions open in the market, and open interest measures the total value associated with these positions. A higher cumulative open demand can be used to determine the strength of the current trend.
Ethereum price, open interest and CVD chart position. Source: Velodata
It is important to note that an increase in aggregated OI corresponds to an increase in the net flux of ETH derivatives, but the spatial extent of CVD decreases. Spot CVD measures the volume of buys and sells, and the dip shows positions sold by investors on exchanges such as Binance, Bybit, and OKX.
Institutions echoed the same sentiment as demand for spot BTC ETFs increased, while flows for ETH ETFs remained relatively weak.
In the last three weeks, ETH ETFs have registered a net positive of $75 million. In comparison, BTC ETFs have seen XYZ numbers. The difference indicates that institutions are more favorable building blocks in the BTC ETF than in the ETH ETF.
Ethereum breaks out of the $2,500 demand zone
On the daily chart, Ethereum price is forming a descending triangle. Since August 5, the altcoin has tested the three-time resistance range of $2,750-$2,850, but the price continues to make lower highs in the rising pattern trend.
Ethereum 1-day chart. Source: Trading View
Between October 21 and October 23, ETH faced a downward correction towards $2,450, testing key daily demand between $2,500 and $2,300.
Currently, the altcoin is rising from the interest zone, and ETH will be critical to maintain its proximity above the daily upward trend line.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
