Ethereum Price Drops to $4,105 Amid Market Changes
Ethereum (ETH) fell 3% on Tuesday. This drop follows a decline in open interest and more investors taking profits.
Ethereum Open Interest Hits Lowest Since May
Ethereum’s open interest dropped to 11.59 million ETH, a level last seen in May. Open interest measures unsettled contracts in derivatives markets.
The fall came after a crypto leverage flush last Friday. This event often signals cautious trading and short-term price consolidation.
On Saturday, open interest hit 11.04 million ETH before rising slightly by Tuesday.
The Chicago Mercantile Exchange (CME) led the recovery. Its open interest surpassed Binance, making CME the largest ETH derivatives market.
US traders are gaining influence. US spot Ethereum ETFs hold 6.79 million ETH, about 5.7% of the total supply.
Investors booked over $800 million in profits in the last 24 hours. Despite this, whales increased their holdings by more than 110,000 ETH.
Ethereum Faces Resistance at $4,270, Holds $4,100 Support
Ethereum saw $240.9 million in futures liquidations in 24 hours. This includes $150 million in long and $90.9 million in short liquidations.
ETH was rejected at $4,270 and is now trying to hold the $4,100 support level. This support is backed by the 100-day Simple Moving Average (SMA).
If ETH breaks above $4,270, it could move toward $4,500. If it falls below the rising trendline, the next key support is $3,470.
The Relative Strength Index (RSI) shows bulls are struggling to take control. The MACD indicator also remains below its neutral level.
