Despite Ethereum's decline of 1.4% and its approach to the $4,300 level, the open interest (OI) on Binance remains stable above $8.4 billion, according to 'CryptoQuant', indicating that traders are holding onto their positions and not succumbing to selling pressure.
Typically, a price decline is accompanied by a decrease in OI due to liquidations or risk mitigation, but current data shows a slowdown in the outflow momentum, with a daily decrease of -3.4% compared to -6.25% two days ago, indicating the beginning of a balance between selling and open positions.
Conversely, Binance's net trading remained negative between -1.08 and -1.11 billion dollars, reflecting continued selling pressure, although it is partially met with ongoing buying.
Additionally, the platforms recorded daily transactions exceeding 120,000 ETH, which reduces the available liquidity and limits the chances of a deeper correction.
These movements are likely either long-term accumulation or redistribution from wallets to cold storage, adding structural support to the market.
In the technical aspect, analyst 'Johnny Wu' warned of the head and shoulders pattern appearing on the chart, describing it as a traditional bearish trap that could surprise the pessimists if it fails.
He pointed to the $3,800–$4,100 area as critical support, which could form a positive launching point if maintained, especially with October approaching, which often sees an improvement in the price performance of cryptocurrencies.
