Ethereum has faced a 10% correction from recent highs of $3,900, resulting in significant market changes.
Analysis of Significant Open Interest Drop
Within just ten days, Ethereum lost over $10 billion in open interest. This indicates that traders and institutional investors are trying to de-risk. Despite the correction, Ethereum recorded over $1 billion in realized profits, pointing to active selling rather than panic liquidation.
First Weekly Decline and Institutional Investments
Last week, Ethereum closed nearly 9.67% lower, marking the first significant decline in months. However, this week the price has already bounced back by 4%. Furthermore, it has been reported that BlackRock acquired 23,000 ETH worth around $88 million, reinforcing institutional investors' interest in buying the dip.
Support at $3,500 and Possible Scenarios
Despite the bounce, the current position of ETH raises questions. If whale selling continues and ETF redemptions escalate, Ethereum could face liquidation risks. Key support is currently at the $3,500 mark, and a surge in spot demand will be crucial for ETH to reclaim former levels.
With current dynamics and market changes, Ethereum is at an important crossroads that could define its path in the coming weeks.
