Ethereum Price Moves Higher Amid Market Dip
Ethereum (ETH) is trading above $3,300 on Wednesday. This follows two days of falls in the wider cryptocurrency market. ETH hit a weekly low of $3,057 but has since bounced back. However, retail demand remains low.
Data from CoinGlass shows Ethereum futures Open Interest (OI) is around $38 billion. This is down 19% from $47 billion on Saturday. It is also 47% lower than the peak of $70 billion reached in August. This drop reflects traders’ caution amid current market uncertainty.
Signs Point to Possible Recovery for Ethereum
Since its record high of $4,956 in late August, Ethereum has seen steady losses. Profit-taking and global economic concerns continue to pressure the price. There are few new catalysts to drive a strong recovery.
According to Glassnode, the Spent Output Profit Ratio (SOPR) for Ethereum fell to 0.97 on Tuesday. It was 1.08 in early October. A SOPR below 1.00 means investors are selling at losses. This can indicate panic selling and weak hands exiting the market.
When SOPR dips below 1.00, it may signal a selling exhaustion point. This could open buying opportunities as selling pressure eases. Glassnode notes that Ethereum’s supply in profit dropped from 78 million ETH to 53 million ETH by October 6. This 32% fall reduces selling pressure, helping ETH chances for a short-to-medium term recovery.
Technical Analysis: Ethereum Bulls Aim for Gains
Ethereum’s price is supported by positive macro news. China recently paused some tariffs on US agricultural goods. This helped lift investor sentiment on Wednesday.
The Relative Strength Index (RSI) for ETH is at 32, up from oversold levels. This means bearish momentum is weakening. If RSI rises further, Ethereum could challenge the 200-day Exponential Moving Average (EMA) near $3,601.
However, the Moving Average Convergence Divergence (MACD) indicator still shows a sell signal. This limits strong bullish momentum for now. Traders should watch key support at $3,057 and resistance around $2,880 if selling returns.
