Currently priced at $3,135, Ethereum (ETH) has experienced a marginal 0.6% increase in value over the last 24 hours.
Unlike Bitcoin (BTC) which surged by 4.9% to reach a new record high of $97,836, Ethereum’s performance has been relatively subdued, with a 2% decline in weekly performance.
While Bitcoin’s rally has propelled the overall crypto market upwards, Ethereum seems to have lagged behind in its price movements.
Despite the lackluster performance of Ethereum, market dynamics indicate that ETH could be poised for significant developments.
An interesting observation was made by CryptoQuant analyst Darkfost regarding Ethereum’s netflow on the Binance exchange, which has recently turned neutral.
Implications for Ethereum
On Binance, Ethereum’s netflow displayed a balance between deposits and withdrawals, signaling an accumulation phase where investors are neither strongly buying nor selling.
Darkfost suggested that this neutral netflow might indicate a buildup of momentum in Ethereum’s market.
Furthermore, the increasing Open Interest in Ethereum Futures, nearing an all-time high on Binance, could indicate an imminent price movement.
Open Interest reflects the total number of outstanding derivative contracts and often precedes increased market activity.
This equilibrium in netflows coupled with the rising Open Interest could be perceived as a precursor to a significant price shift for Ethereum, as described by the analyst as “the calm before the storm.”
Increased Open Interest and Growth in Active Addresses
Ethereum’s fundamentals also show promising signs of market participation, with Glassnode data revealing a steady rise in active addresses, indicating growing retail interest.
After dropping below 500,000 earlier this month, active addresses have now reached 514,000 as of November 20.
This surge in active addresses suggests a renewed interest from retail investors, potentially bolstering ETH’s price in the short term.
In addition, Ethereum’s Open Interest in the Futures markets has risen by 3.86% to $18.56 billion, accompanied by a substantial 40.41% increase in Open Interest volume, now at $42.88 billion.
These metrics point towards increasing engagement in Ethereum’s derivatives markets, indicating a growing investor interest in both short-term and long-term opportunities.