Connect with us
Active Currencies 14741
Market Cap $2,586,356,681,850.00
Bitcoin Share 51.55%
24h Market Cap Change $0.42

Is Ethereum ready for a pivot as this ETH front sees renewed interest

2min Read
Ethereum [ETH] ready for a pivot as futures contracts see renewed interest

Share this article

  • ETH saw an increase in the demand for futures contracts, which may result in rising volatility this week
  • Though the metrics were in favor of the bulls, ETH’s price saw a bearish shift

Ethereum [ETH] dashed all hopes for a short-term rally as its performance last week was a disappointment. The king of altcoins dropped by 13% from mid-last week to its press time level. Moreover, recent observations indicated that ETH might experience more volatility.

Read Ethereum’s [ETH] Price Prediction 2023-24

According to the latest alerts by Glassnode, the amount of ETH supply last active five to seven years recently hit a four-month high. Even more interesting was a finding, which revealed that Ethereum futures contracts’ open interest reportedly reached a new monthly high.

The increase in the demand for futures contracts may give way to an increase in the cryptocurrency’s volatility this week. However, these observations do not necessarily indicate which direction will be in favor. Perhaps a look at some of ETH’s metrics may provide a rough idea of what to expect.

Launching a bullish assault?

ETH’s open interest metric saw a sharp uptick in the last 24 hours. This confirmed that the demand for the cryptocurrency was recovering.

ETH open interest

Source: CryptoQuant

This uptick in open interest also reflected a resurgence in address activity. The 24-hour active addresses metric experienced an uptick in the last 24 hours, confirming that the retail market saw some activity. This was also accompanied by a sharp uptick in velocity, thus creating the expectation that ETH might uphold higher volatility in the next few days.

ETH velocity and daily active addresses

Source: Santiment

But what was the state of demand for ETH in the market? A look at the coin’s exchange flows revealed that it had higher exchange outflows than inflows in the last 24 hours. Nevertheless, ETH exchange inflows had a higher increase than the number of exchange outflows.

ETH exchange flows

Source: CryptoQuant

While these metrics indicated a resurgence of demand, especially of the bullish kind, they also revealed that the bears were not yet done with ETH. As of 19 December, its price action saw a drop in bearish momentum in the last three days after the sharp crash it experienced last week.

ETH bulls are putting up a fair fight

Perhaps the best explanation for the above observations was that the bulls were attempting to make a comeback. This may explain why the downside slowed down and lost its momentum. However, the prevailing bullish strength in the last two days was not strong enough to lend favor to the bulls.


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.