Ethereum Open Interest Holds Firm at $8.4B: Why Traders Aren’t Flinching Despite Price Pressure

Ethereum (ETH) has slipped 5.5% up to now seven days, with as we speak’s decline including one other 1.4% as costs battle close to $4,400. Yet, regardless of the turbulence, derivatives information reveals exceptional resilience.

According to CryptoQuant, Binance’s Ethereum open curiosity (OI) has remained regular above $8.4 billion, even after ETH dipped beneath $4,400 this week.

Typically, sharp worth pullbacks set off a big drop in OI as merchants unwind leveraged positions. This time, nevertheless, ETH merchants are holding agency, suggesting both expectations of a rebound or an absence of conviction in additional draw back momentum.

The moderation in OI contraction, down simply 3.4% in 24 hours in comparison with -6.25% earlier this week, additional helps the concept aggressive deleveraging is shedding steam.

Ethereum Buyers Absorbing Pressure Despite Negative Flows

Market sentiment nonetheless leans bearish, with Binance’s Net Taker Volume persistently adverse, ranging between -1.08 billion and -1.11 billion. This signifies sellers stay aggressive. However, the truth that OI is holding regular suggests consumers are quietly absorbing stress reasonably than retreating utterly.

Spot market exercise provides one other layer of optimism. Daily change withdrawals have commonly exceeded 120,000 ETH throughout platforms like Binance and Kraken. Such outflows scale back sell-side liquidity and trace at longer-term accumulation methods.

Whether these flows replicate institutional custodial strikes or retail positioning, they tighten change reserves and create circumstances much less favorable for prolonged sell-offs.

A Possible Bear Trap Before “Uptober”?

Technically, Ethereum’s chart resembles a bearish head-and-shoulders formation, elevating alarms about additional draw back. Yet, some analysts argue this might be one of many “greatest bear traps” forming out there. Crypto strategist Johnny Woo pointed to the $3,800–$4,100 vary as a key help zone.

Should ETH maintain above this stage, merchants sidelined by bearish sentiment could also be pressured to re-enter at increased ranges, fueling an upside reversal. Historically, October has usually introduced reduction rallies, dubbed “Uptober” by merchants, suggesting that Ethereum’s present weak spot would possibly set the stage for a shock rebound.

For now, Ethereum faces the problem of shaking off September’s stress whereas holding vital help. If consumers proceed absorbing sell-side flows and OI stability persists, the stage might be set for a bullish counterattack heading into the ultimate quarter of 2025.

Cover picture from ChatGPT, ETHUSD chart from Tradingview