Ethereum Price Risks Dip Below $2,900

Declining Interest Among Ethereum Traders

This contraction of trade volume is witnessed along with the fall in Ethereum’s price. Ethereum’s trading volume has shrunk 25% over the last 24 hours to $35 billion, indicative of weaker demand. Fewer buyers compared to the number of sellers suggest lesser appetite for the asset, hence indicating the drop in price.

To this decline in activity, market analysts point as a probable end of the recent bullish trend. When price and volume both decrease, this usually shows that the movement has lost steam; traders will be discouraged by this and enter into a cycle of reduced interest.

Adding to this, Ethereum’s open interest — a key metric tracking active derivatives contracts — fell to a seven-day low on Thursday. Data from Santiment shows open interest now stands at $8.26 billion, a 12% decline since Monday. This is indicative of traders closing their positions in a bid to lock in gains or reduce losses, rather than opening new ones.

Future Scenarios for Ethereum Price

Ethereum currently trades just above the vital support line of $2,942. Should the market remain dull, ETH may challenge this level and slip further to $2,787.

If sentiment improves and demand picks up, Ethereum might recover and break through the resistance around $3,162. That could allow it to go on another leg up, retesting recent highs near $3,443.

For now, traders are keen on the next move of Ethereum, as the market waits for signs of stronger momentum.