Data from Binance shows that the Ethereum market is going through a delicate phase characterized by a clear decrease in price momentum, while open interest remains relatively high despite the price decline. This reflects a significant shift in the dynamics of the futures market, as the Z-Score for 30-day open interest registered a value of only 0.50 This level indicates that current open interest is slightly above the 30-day moving average, yet still within a normal range and not indicative of the exceptional pressure observed previously.
The $6.61 billion in open interest demonstrates that traders are still holding a significant portion of their positions, despite the price dropping from levels near $3,900 to below $3,200. This discrepancy between price decline and the stability of open interest is a common pattern during market repositioning phases, where traders reduce their trading activity without fully exiting the market The OI avg30 (6.44 billion) and OI std30 (329 million) indicators confirm that the current movement in open positions remains within the typical bounds of market volatility, without any unusual surge in position buildup.
The Z-Score remaining at 0.50 suggests that the increase in open interest is not sharp enough to reflect strong downward pressure in the derivatives market. However, it does indicate continued trader interest in building new positions, particularly in response to the recent price decline.
The drop in Ethereum’s price reflects a clear loss of upward momentum after the market failed to sustain its previous highs. With open interest remaining stable, this may signal the potential for continued downward pressure if large positions are predominantly short. Conversely, if long positions dominate, this stability could support a possible rebound scenario.
Written by Arab Chain
