Ethereum Correction at ‘Late Stages’ as Metrics Point to Bottom
Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.
Ethereum may be nearing a local bottom, as several popular on-chain indicators suggest that we could be in the ‘late stages’ of the correction that dragged Ethereum below the $3,000 level.
In an August 19th CryptoQuant report, author Burak Kesmeci cited the buy-sell ratio and open interest (OI) as compelling indicators that “Buyers are starting to regain strength in Ether.”
He noted that the taker buy-sell ratio is “positive again,” which calculates the ratio of buyers to sellers of Ether across all major cryptocurrency exchanges.
According to CoinGlass data, while the larger 24-hour period shows a slight edge for short-sellers of Ether, the most recent 12-hour period has turned positive, with 51.21% of positions being long.
Meanwhile, the total open interest (OI) for Ethereum futures, representing the number of contracts that have yet to be settled, topped $10.69 billion, up approximately 10% since the previous day, Aug. 18.
However, Kesmeci cautioned that for “significant upward movement in price, leveraged players will need to return to the scene.”
Something that would encourage more traders to open bullish positions. With this additional leverage within the market positive price movements would be amplified.
On March 12, when Ethereum reached its year-to-date all-time high of $4,066, OI was $13.67 billion. Likewise, when it retested those levels again in June, at $3,800, OI soared even higher above $15 billion.
“This indicated a market correction was likely, and indeed, the correction occurred,” Kesmeci added.
Despite the much-anticipated
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