Ethereum

bullish

<ul>
  
 <li>The recent purchases of Ethereum by Coinbase at lower prices have led to debate on the market turning bullish as open interest in Ethereum futures undergoes a steep drop.</li>   
 <li>Current funding rates for Ether suggest a bearish sentiment, though the situation may result in a short squeeze and rising prices.</li>   
 <li>Market participants are closely monitoring whether Coinbase’s supply-buying approach will lead to a rebound in Ethereum prices or further declines.</li> 
</ul>   
<p>Coinbase has been actively buying Ethereum during the recent significant price drop observed, thus attracting the attention of many market players. This increase in buying occurred alongside a significant decrease in open interest in <a href="https://cryptonewsland.com/growing-ethereum-open-interest-points-to-bullish-momentum/" target="_blank" rel="noreferrer noopener">Ethereum </a>futures, making some people speculate about the possibility of a reversal in the market.&nbsp;</p>   
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   https://twitter.com/CredibleCrypto/status/1828576230964134324 
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<p>Analysts and traders are monitoring such trends to determine the possible impact they might have on the following price changes of Ethereum.</p>   
<h2 class="wp-block-heading" id="h-ethereum-drop-and-funding-rates">Ethereum Drop and Funding Rates</h2>   
<p>In a report published a few days ago, <a href="https://x.com/CredibleCrypto/status/1828625007167041560" target="_blank" rel="noreferrer noopener nofollow">CrediBULL </a>Crypto noted that Coinbase has been accumulating Ethereum during the price slump. This has led to open interest dropping significantly. The analyst said that this pullback in open interest could mean a liquidation process or the exit of traders who hold positions resulting in turnarounds. Thus, CrediBULL Crypto believes that this might be a good entry point for traders to switch from short to longs.</p>   
<p>Another key element that has affected the current state of the market is the shift in the funding rates. In a report by CrediBULL Crypto, funding rates for Ethereum have been turning negative, meaning that short positions are paying the longs.&nbsp;</p>   
<p>In most cases, such a situation suggests bearish tendencies among the traders involved in the specific stock. However, negative funding rates also create conditions for the activation of a short squeeze where short-sellers are forced to buy back their positions, which may well push up the price of Ethereum.</p>   
<h2 class="wp-block-heading" id="h-will-coinbase-s-strategy-pay-off">Will Coinbase’s Strategy Pay Off?</h2>   
<p>Some see<a href="https://cryptonewsland.com/coinbase-prime-receives-btc-and-eth/" target="_blank" rel="noreferrer noopener"> Coinbase</a> as highly bullish, as it has aggressively purchased large amounts of Ethereum at a lower price. According to the chart provided by CrediBULL Crypto, there is a significant drop in the cumulative volume delta and the spot volume, which implies a slowing down in trading.&nbsp;</p>   
<p>Market analysts are now wondering if the actions that Coinbase implemented, as well as the present state of the market, will result in a continuous rebound or if there are still more knocks that Ethereum needs to take. The next several days should prove significant as Ethereum’s future either turns for the worse or continues toward recovery.</p> 
<p>The post <a href="https://cryptonewsland.com/coinbase-bets-big-on-ethereums-recovery-amid-massive-open-interest-decline/">Coinbase Bets Big on Ethereum’s Recovery Amid Massive Open Interest Decline</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Coinbase Bets Big on Ethereum’s Recovery Amid Massive Open Interest Decline

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