In August, Ethereum's price saw a steady increase, nearing $5,000, but has since cooled slightly. Currently, ETH is trading around $4,648, with traders watching for market movements.
Cooling Open Interest
In recent weeks, open interest in Ethereum has been rising steadily, but now some flattening is occurring. This may indicate that traders are closing their positions, waiting for clearer market signals.
Fading Longs and Rising Shorts
The volume of net long positions is decreasing, as many traders look to lock in profits. Concurrently, net shorts are increasing, indicating more traders are betting on a price decline.
What to Expect in the Next 24–48 Hours
Currently, Ethereum appears to be entering a short-term correction phase. A decline to the $4,500–$4,400 range would not be surprising if selling pressure escalates. However, if ETH holds above $4,600 with increased volume, this could lead to a short squeeze, driving the price back towards $4,800–$5,000.
Ethereum is at a critical juncture, and its movements will depend on maintaining support levels. Traders should be prepared for volatility in the coming days.
