Why does Ethereum (ETH) open interest remain stable amid price fluctuations?
Despite Ethereum's (ETH) recent price performance being weak, having briefly fallen below the $4,300 mark, the derivatives market has shown rare resilience.
Against the backdrop of price fluctuations, the global ETH open interest (OI) currently remains above $1.15 billion, without a significant decline, which has attracted widespread attention in the market.
Typically, a significant drop in price is accompanied by a decrease in open interest, indicating the market is experiencing position liquidations or risk aversion. However, even though ETH's price has receded over the past two weeks, traders still tend to maintain their positions, reflecting market expectations for a rebound.
From the data, Binance's ETH open interest has changed by 0.27% over the past 24 hours, showing a marked easing compared to previous days, indicating that the deleveraging process is slowing down and the selling pressure in the derivatives market is weakening. Meanwhile, data from the spot market has also injected a boost into the market.
CryptoQuant data shows that major exchanges like Binance and Kraken are seeing daily ETH outflows exceeding 120,000 coins, and this sustained withdrawal behavior has reduced the reserves of these exchanges, tightening liquidity, and thereby limiting the depth of future selling pressure.
Whether this trend reflects increased capital or reallocation of custody, it has injected a structurally bullish tone into the otherwise cautious derivatives market.
Analysts point out that the current market seems to be seeking a balance between short-term bearish capital flows and long-term accumulation. Some technical analysts, like Johnny Woo, have even referred to the current adjustment as one of the "biggest bear market traps."
He believes that although the price pattern appears bearish, the key support area of $3,800-$4,100 could become a turning point for the market. If the price can stabilize within this support zone, it may validate the market's optimistic expectations for October.
Historical data shows that October is often referred to as "Up October," known for its recurring rebound patterns. Therefore, despite the market's relatively sluggish performance in September, analysts believe that Ethereum may still experience an unexpected surge by the end of the year.
According to Coingecko data, ETH has seen a 2.2% increase in the last 24 hours, with its price bouncing back to $4,423, and this growth may also reflect enhanced investor confidence and increasing market demand.
