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Ethereum price could dump one last time before ‘giga pump’

Ethereum price could dump one last time before ‘giga pump’

Crypto analysts are eager to understand what is next for the second most valuable cryptocurrency by market cap, Ethereum (ETH). Finbold reported two ‘bullish’ signs for Ethereum on August 14, but some experts believe that ETH could face one more dump before being able to show positive results. Something similar is also expected to happen with Bitcoin (BTC).

“If Ethereum falls below the $1,800 mark, the next significant support level is positioned at approximately $1,600. At this level, 2.48 million addresses acquired a total of 3.8 million ETH.”

– Ali (@ali_charts, on X)

This is what the Twitter (X) account known as Ali (@ali_charts) said on August 16. Pointing to a relevant price zone for Ethereum at $1,600, that should have high buyer demand in case ETH loses its current ranges.

‘Open Interest’ spikes usually precede ETH pumps, but they happen with a cost

An insight posted by the account ‘crypto sunmoon’ on CryptoQuant suggests a correlation between Open Interest (OI) positions and Ethereum’s price actions, as in:

“Recent open interest in the Ethereum futures market shows the same pattern. When the price of Ethereum drops, open interest spikes, followed by a bounce, which is followed by a decrease in open interest.”

– crypto sunmoon

Meanwhile, it’s possible to see, in the shared chart, a recent small drop in ETH’s price, followed by a small spike in Ethereum’s Open Interest positions — but these are far smaller than previous movements, which could suggest that the OI spike is not done yet. Neither price drops.

Ethereum: Open Interest - All Exchanges, All Symbol.
Ethereum: Open Interest – All Exchanges, All Symbol. Source: CryptoQuant

ETH price analysis

At this moment, ETH is trading above the $1,800 range ($1,815, by press time), with 1.31% losses for the day, and above 5% losses in the last 30 days.

ETH 1-day price chart. Source: Finbold
ETH 1-day price chart. Source: Finbold

All things considered, the digital asset’s ability to meet the above analysts’ expectations will depend on further developments related to Ethereum, as well as the general sentiment on the wider crypto and macroeconomic landscape.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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