Ethereum

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<p>Is Ethereum price due for a major rally? The Ethereum native cryptocurrency achieved a considerable uptick so far this month. However, many analysts feel that it has underperformed compared to some of its rivals.</p> 
<p>There are multiple signs that point to the possibility of a major ETH rally. For starters, Ethereum futures open interest recently soared to its highest level in its entire history. It peaked at $21.22 billion in the last 24 hours.</p> 
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   Ethereum futures open interest / source: Coinglass
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<p>ETH has been experiencing higher open interest in 2024 compared to the previous bull run. For example, its previous peak was $17.09 billion at the end of May 2024. This was higher than its $13.08 billion peak in November 2021.</p> 
<p>But how will this ETH <a href="https://www.thecoinrepublic.com/2024/11/21/bitcoin-price-usd-at-ath-open-interest-hits-record-60-billion/">open interest surge</a> affect the cryptocurrency? Open Interest is a double-edged sword because it could not only indicate demand but also sell pressure in the form of shorts.</p> 
<p>According to Coinglass, ETH shorts were notably higher than longs in the last 3 days. This indicates rising expectations of sell pressure after the cryptocurrency’s bullish momentum ground to a halt during the weekend.</p> 
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   ETH longs vs shorts / source: Coinglass
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<h2 class="wp-block-heading" id="h-will-eth-price-be-subject-to-a-pullback-or-another-rally"><strong>Will ETH Price be Subject to a Pullback or Another Rally?</strong></h2> 
<p>It is clear why some would expect a bearish outcome judging by ETH’s recent price action. Zooming out reveals that the cryptocurrency has been trading in a wedge pattern. It recently retested this pattern’s descending resistance line.</p> 
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   ETH price action / source: Traingview
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<p>Bullish momentum went on recess after previously achieving a significant upside this month. ETH’s recent resistance retest indicates that the cryptocurrency could be headed for some downside.</p> 
<p>A substantial pullback could see Ethereum price dip below $3,000 and possibly to $2,600 in case of a major crash. This could possibly result into a retest of the support line.</p> 
<p>While some profit-taking was observed, there were significant reasons to also expect a potential bullish breakout from the consolidation zone.</p> 
<p>One of the main reasons was that Ethereum ETFs kicked off this week with positive flows. Roughly $43.2 million worth of inflows was recorded during Monday’s trading session.</p> 
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  <img loading="lazy" decoding="async" width="678" height="604" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-743.png" alt="" class="wp-image-853585" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-743.png 678w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-743-300x267.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-743-150x134.png 150w" sizes="auto, (max-width: 678px) 100vw, 678px">
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   Source: X
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<p>ETFs have had a significant impact on market direction recently especially for Bitcoin. ETFs are unlikely to buy unless they anticipate some upside. A breakout from the current resistance level validate the positive ETF flows.</p> 
<p>However, there was another major reason for bullish expectations. Bitcoin dominance dipped during the weekend after topping out at 61.53% last week. It hovered at 59.01% at the time of writing. If Bitcoin dominance continues dipping, it could pave the way for more liquidity flows into ETH.</p> 
<p>It is possible that an <a href="https://www.thecoinrepublic.com/price-prediction/ethereum/">Ethereum price rally</a> could be on the cards if the Bitcoin dominance continues declining. Large holder flow data from IntoTheBlock revealed that inflows into large accounts were at 4 week highs.</p> 
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  <img loading="lazy" decoding="async" width="1024" height="325" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-1024x325.png" alt="" class="wp-image-853590" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-1024x325.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-300x95.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-768x244.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-150x48.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-696x221.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744-1068x339.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-744.png 1105w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
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   ETH large holder flows / source: IntoTheBlock
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<p>ETH large holder inflows peaked at 714,430 coins as of 25 November. A sign that there was strong demand from whales despite the recent resistance retest.</p> 
<p>Large holder outflows also registered a significant surge on 25 November. However, they peaked at 603,040 ETH which was slightly lower than inflows.</p> 
<p>In other words, whale demand was slightly higher than whale sell pressure. A strong demand resurgence could potentially push ETH price close to the $4,000 before it encounters its next major resistance level.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/11/27/ethereum-price-breakout-possible-as-open-interest-soars-to-21-22/">Ethereum Price Breakout Possible As Open Interest Soars To $21.22B</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Ethereum Price Breakout Possible As Open Interest Soars To $21.22B

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