In a shift of investor sentiment, Ethereum is seeing a rise in its open interest (OI) in the derivatives market, even as its price continues to trend downward. This information comes from data provided by Santiment, which also indicates that Bitcoin's OI is decreasing following issues surrounding a spot Bitcoin exchange-traded fund (ETF).
Historically, Ethereum has been favored by crypto investors and traders over Bitcoin. However, recent data suggests that this preference may be re-emerging. As of Thursday, Bitcoin's OI averages at $6 billion, while Ethereum's stands at $2.8 billion.
The false news surrounding the approval of a Bitcoin ETF (TSX:EBIT) led to a decrease of $270 million in Bitcoin's OI. In contrast, Ethereum's OI saw an increase of $93 million. If past trends continue, Bitcoin may experience an increase or maintain its current trading price of $28,310.
Despite Ethereum's decline in price, there are signs of potential recovery. A rise in investor sentiment could lead to a recovery towards the $1,600 target. However, this would require consistent support from its holders as the weighted sentiment has been on a downward trend since the beginning of October.
Another key factor is the number of active addresses and daily on-chain transactions. Currently averaging 380,000, these figures have slightly declined from the August average of 400,000. This suggests a need for improvement to sustain investor interest in Ethereum.
The recent trends in open interest might suggest increased bullishness for Ethereum if they continue and reach the five-month peak sentiment. However, this will largely depend on factors such as investor sentiment and on-chain activity.
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