Ethereum’s light brightens on $3,500 support line

During the Saturday trading session, Ethereum traded at over $3,503 with a market valuation of $428 billion. Data from CryptoQuant showed Ethereum’s open interest fell by roughly $2 billion after hitting an all-time high of $13 billion on June 5.
The entire amount of long and short positions in the market is known as open interest. While a decline in open interest may produce calmer markets, a large increase in open interest may cause greater market volatility.

Ethereum’s price hasn’t yet hit a new all-time high, which has led to more volatility and liquidations despite ETH’s new OI high. As the market gets more excited about spot ETH ETFs, the OI decline might momentarily calm things down.

The daily timeframe indicates that the price of ETH has returned to $3,500 following another rejection from the $4,000 resistance level. At the moment, the $3,500 barrier is holding and keeping the price from dropping any lower toward $3,000.However, the market can moderate swiftly toward the $3,000 support zone and the 200-day moving average nearby if the $3,500 level is broken to the negative.

The $3,500 level is crucial due to these coincidental factors, and the way the price responds to it will likely determine how the market moves in the upcoming months. Therefore, the direction of the possible breakout from this pattern determines the direction of the next move. The market attitudes suggest that traders holding long positions outnumber those holding short positions, which may portend a spike in price soon.

Issuers have started initiating marketing efforts as the possible launch of a spot ETH ETF approaches, in an attempt to corner the market. Bitwise unveiled a 40-second promotional video that contrasted Ethereum’s capacity to transfer assets around the world around the clock with traditional finance’s seven-hour and weekend time constraints.