Recent reports indicate Ethereum has struggled compared to other major cryptocurrencies. A CryptoQuant analyst, Percival, notes that Ethereum's open interest has increased by 28.57% since August, suggesting rising investor optimism for a rally. Though still lower than June's $13 billion, this rise points toward potential upward price movement.
Factors such as possible Federal Reserve interest rate cuts and growing tokenization focus might drive interest toward DeFi protocols, enhancing Ethereum's appeal for investors seeking long-term gains. Percival notes Ethereum's RSI is at 61, indicating an overheated market. The convergence between open interest and RSI levels suggests short-lived price corrections, offering traders opportunities for market rebound positioning.
The analyst predicts a 7% to 9% correction with potential future gains in Ethereum's price and demand. Ethereum currently trades at $2,611, showing slight dips over a 24-hour period, despite a 9.3% weekly rise. Another analyst, Ali, suggests a significant rally could be on the horizon, with Ethereum recently reaching a channel's lower boundary.
This level historically leads to an average 130% price surge. If trends hold, Ethereum could climb to $6,000, maintaining the key $2,300 support level. Despite Ethereum's market volatility, it remains above this support, reinforcing theories of a potential bullish breakout.
