#AreYouBullishOrBearishToday?

#BtcPriceAnalysis
#WillCryptoMarketBreakOutInSeptember?
Ethereum Price Predictions: Ethereum Investors Make $800 Million in Profits as Open Interest Declines:
- Ethereum investors made profits exceeding $800 million on Friday.
- The open interest for Ethereum has decreased significantly after two days of heavy liquidations.
- ETH is trying to regain the $4000 level after bouncing off the 100-day simple moving average.
- Ethereum (ETH) is trading around the key level of $4000 after a profit-taking rise on Friday.

- Decrease in open interest on Ethereum amid rising profit-taking:
Ethereum saw a rise in its profits on Friday, with investors earning over 800 million dollars, according to data from Santiment. This increase came after Ethereum dropped to 3800 dollars on Thursday, marking its first decline below the 4000 dollar threshold in over a month.

An image showing the realized profits and losses of the ETH network. Source: Santiment

The bearish performance of Ethereum this week has triggered two major long liquidations, including $401.8 million on Thursday and $490 million on Tuesday.

After weeks of strong performance, excessive leverage on ETH has decreased, leading to a sharp decline in the monthly average open interest, especially on Binance, according to a CryptoQuant report on Friday.

The report stated that this decline represents one of the largest open interest resets since the beginning of 2024, following a period of significant market interest and increased leverage.

The Binance platform experienced the largest drop in leverage, losing over 3 billion dollars on Tuesday, and an additional billion dollars the following day. The open interest of Bybit fell by 1.2 billion dollars, while Okex recorded a drop of 580 million dollars.

Intensive liquidations, along with the decline in the price of Ethereum and decreased leverage, have led to increased caution among investors. Historically, this trend often results in further weakness in price movement and increased distribution.

Despite the downturn and market behavior, whale investors have begun buying stocks at the dip.

Smart money tracker data from Lookonchain shows that 15 wallets have collected 406,117 ETH, approximately worth 1.6 billion dollars, from Kraken, Galaxy Digital, BitGo, and FalconX over the past two days.

Meanwhile, two Ethereum wallets that had been inactive for over eight years transferred 200,000 Ethereum, worth nearly $785 million, to new addresses, according to Lookonchain data. The data revealed that the coin holder, who initially acquired the tokens on the Bitfinex platform, still controls 736,316 Ethereum, worth approximately $2.89 billion, distributed across eight wallets.

- Ethereum Price Predictions: Ethereum aims to recover from the key level of $4000:
Ethereum (ETH) is trying to regain the psychological level at $4000 after bouncing off the (SMA) for 100 days. The leading altcoin faces resistance at $4100, which has been a major barrier over the past year.

The daily chart for the ETH/USDT pair

Moving above the $4100 level could lead to ETH rising to test the $4500 level, which is just above the 50-day simple moving average.

On the negative side, optimists may continue to defend the simple moving average of 100 days. If the decline continues, the level of $3,500 may also form support.