Meanwhile, Ethereum’s Relative Strength Index (RSI) sits at 61, suggesting the market is overheated. However, there are signs of a potential rally. Data from a CryptoQuant analyst, Percival, demonstrates significant growth in Ethereum’s open interest, up 28.57% from August, indicating rising investor optimism.
Factors including potential Federal Reserve interest rate cuts and increasing focus on tokenization on the Ethereum blockchain could contribute to this uptick. The convergence of open interest and RSI levels implies short-lived price corrections, presenting opportunities for traders to position themselves for a market rebound.
Analysts predict a correction of around 7%-9% before Ethereum potentially rallies again, favoring long positions as traders await a potential rise in both price and demand.
Recent reports indicate that Ethereum has struggled to compete with other major cryptocurrencies.
