Ethereum (ETH) price fell 7.5% over the week after Bitcoin (BTC) and other major altcoins failed to recover.
However, one analyst believes that the long-term market structure for ETH is bullish as the price enters a key demand zone.
Ethereum remains in the “buy zone”.
Web3 expert and independent trader Mando CT shared his thoughts on X with his 600,000 followers, hinting at the importance of “patience” with Ethereum.
The trader said Ethereum remains in ‘buy territory’ from a long-term investment perspective, adding:
“When $ETH surges, the entire market typically joins in, fueling altcoin operations and boosting the entire cryptocurrency ecosystem.”
This is Mando CT’s Ethereum analysis chart. Source: X.com
Meanwhile, Kyledoops, technical analyst at Crypto Banter, highlighted that Ethereum exchange net flows to derivatives platforms increased by 96,000 ETH on October 24. These significant inflows can trigger increased market activity, and historically, such events have resulted in volatile price movements. market.
Ethereum Exchange Netflow on derivatives exchange chart. Source: X.com
Considering the recent influx, analysts suggested:
“This surge could signal another wave of price correction or a significant market shift.”
ETH’s total open interest has reached a yearly high.
Although there may be a lack of clear bullish confidence in the price of Ethereum, the derivatives market is still very active. ETH’s total open interest (OI) hit a new yearly high this month, according to data from VeloData.
Total Open Interest is the total number of buy and sell positions open on the market, and Open Interest measures the total value associated with these positions. Higher total open interest can be used to confirm the strength of an existing trend.
Ethereum price, open interest and spot CVD charts. Source: VeloData
While the increase in total OI coincides with the increase in ETH derivatives net flows, it is important to note that spot volume (CVD) continues to decline. Spot CVD measures buying and selling volume, and declines indicate spot selling by investors on exchanges such as Binance, Bybit, and OKX.
Institutions echoed similar sentiments, as ETH ETF inflows remained minimal despite growing interest in spot BTC ETFs.
Over the past three weeks, the ETH ETF has recorded net gains of $75 million. In comparison, the BTC ETF has witnessed XYZ numbers. This difference indicates that institutions are more comfortable building positions in the BTC ETF rather than 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 overhead resistance range of $2,750-$2,850 three times, but the price continues to form bullish lower highs in relation to the pattern’s rising trendline.
Ethereum 1 day chart. Source: Trading View
Between October 21 and October 23, ETH corrected sharply towards $2,450, testing key daily demand between $2,500 and $2,300.
The altcoin is currently bouncing back in the demand zone and will likely play a pivotal role in helping ETH maintain its daily close above the rising trend line.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.