Ethereum Holds Near $2,500 Amid Derivatives Weakness
Ethereum's price has held steady near $2,500 on Wednesday, despite weakness in derivatives markets and mild buying dominance in spot markets.
The cryptocurrency's price growth has outpaced open interest since July 1, suggesting weak conviction among long leveraged traders. Open interest measures the total worth of unsettled contracts in a derivatives market, and in Ethereum futures, it has declined by roughly 1 million ETH since July. In USD terms, open interest has jumped by 54% to $33.7 billion since July 1, the same period during which ETH's price rose by 58%.
Net Taker Volume, which measures the difference between buying and selling volume from traders executing market orders in perpetual futures, has shown negative flashes over the past few days, indicating a struggle for dominance between bulls and bears. On the spot side, ETH Exchange Netflows show withdrawals from exchanges have outpaced deposits over the past week, but at a modest pace.
Ethereum's price has stayed put in the tight $2,431-$2,544 range, with support coming from its 20-, 50-, 100- and 200-day Exponential Moving Averages (EMAs). Momentum indicators back the constructive bias, with the 14-day Relative Strength Index (RSI) hovering in the low 60s and the Stochastic Oscillator (Stoch) also around 62.