ETH rebounds above $3,700, with strong open interest and low exchange supply indicating investor confidence and potential for further gains.
Ethereum (ETH) has been making headlines recently due to its resilience and potential for a significant price rebound. Despite market volatility and a recent dip, the cryptocurrency is showing signs of strength and investor confidence.
On June 9, 2024, Ethereum experienced a price rebound above $3,700 after hitting a two-week low of $3,598. This dip followed a hawkish US Non-Farm jobs report, which impacted the broader crypto market. However, Ethereum's ability to recover quickly indicates underlying strength in the asset.
One of the key indicators of Ethereum's potential for a bullish recovery is its open interest in futures contracts, which remains above $16 billion. Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. A high level of open interest suggests strong investor confidence and a potential continuation of the upward price movement.
Another positive sign for Ethereum is the decline in its supply on exchanges, which is currently at an 8-year low. When the supply of a cryptocurrency on exchanges decreases, it often leads to a price surge due to reduced selling pressure. Additionally, a rise in daily transactions on the Ethereum network indicates growing activity and confidence among users.
Despite recent market fluctuations, Ethereum has managed to maintain its position above key moving averages. Immediate support levels for Ethereum are identified at $3,620 and $3,500, while key resistance levels are at $3,800 and $3,980. If Ethereum can break through these resistance levels, it could potentially challenge the $4,000 mark.
