In recent weeks, Bitcoin and Ethereum have seen an interesting wave of price action with high volatility. Naturally, this volatility has stimulated a wave of trading while cryptographic traders see this as an opportunity period due to fluctuations. The result of this was a rapid increase in the open interest of Bitcoin and Ethereum during this period. Although this alone is significant, looking at previous performances, this could suggest where the prices of Bitcoin and Ethereum then go.
Open bitcoin and Ethereum remain very high
Towards the end of August, the Ethereum price began to increase rapidly, fed by large purchases of Ethereum treasury companies such as Bitmin and Sharplink. This thrust would eventually see the Ethereum price reaching a whole new record of all time, breaking its peak of $ 4,800 compared to 2021 after climbing above $ 4,950.
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In the same vein, the open interest had increased quickly, and this metric also reached new heights of all time. On August 23, in the middle of the frenzy, the open interest of Ethereum exceeded $ 70 billion for the first time in history, marking an important stage. Since then, Open Ethereum interest has traced. But it is still above $ 55 billion at the time of writing this article, which suggests that the interest in Altcoin is still high.
Although Bitcoin’s open interest has not reached new heights in August like Ethereum, it also remained at very high levels. Coinglass data show that Bitcoin’s open interest is still on average at $ 80 billion, still near the top of $ 86 billion that was recorded in July.
What the interest open to Aths could mean
Looking at the previous performance when the open interest of Bitcoin and Ethereum was at all high times, there is generally a period of consolidation which follows, in particular as a warmer warmer. This was seen after the first heights of all time of the year in February, followed by a few months of consolidation.
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Again, the peaks in June were followed by short consolidations, which ended in July. And then, another consolidation before the open interest started to bounce back in August. This shows that the consolidation period is not always long, but in the end, it is always another increase in open interest that coincides with an increase in the price.
From there, if the open interest of Bitcoin and Ethereum was to hit new heights, this would probably mean that their prices are also ready to reach new peaks. After the trend in recent months, open interest could start again to resume towards the end of September, powered by price overlaps.
Dall.e star image, tradingView.com graphic
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