With apparently high demand for investors, the ETHEREUM price seemed to cross the psychological level of $ 3,000 during the past week. However, this dream hit a large bloc after geopolitical tensions escalated in the late hours of Thursday, June 13th.
It did not take a long time in Israel’s air strike against Iran to influence global financial markets, as encryption prices surrendered to a new wave of declining pressure. Specifically, Ethereum, the second largest encrypted currency depending on the maximum market, lost about 6 % of its value during the past 24 hours.
Is the capital flowing from ETH to BTC?
In a quick post on the Cryptoquant platform, the Amr Taha series subscriber New visions in the recently reached fluctuation wave to the cryptocurrency market. Crypto Pundit pointed out that Ethereum and Bitcoin have been particularly influenced by recent global events.
First, Taha noticed the decrease in the open interest of Ethereum (OI) on Binance, the largest exchange of cryptocurrencies in the world by trading. The data from Cryptoquant shows that the ETH OI scale has witnessed a 19 % decrease in the past 24 hours, coinciding with a decrease in the price.
The open interest index estimates the total amount of money that flows into derivatives from a specific encrypted currency at any specific time. The value of the decline in OI is often a declining signal, indicating a decrease in investor confidence and a positive feeling.
According to Taha, this sudden decrease in the open interest ethereum indicates a wave of sales caused by panic, as investors come out instinctively from their long positions. The analyst said: “The traders are likely to rush to close their long sites, either for fear of deeper losses or automatically by forced liquidation with the injury of stopping stimuli.”
Taha drew a parallel relationship between Ethereum and Bitcoin flow outside Coinbase, the largest central exchange in the United States. Cryptoquant data shows a large withdrawal of 7000 BTC from the trading platform last day.
According to Taha, this significant flow of Bitcoin exchange indicates, in particular, with a decrease in Ethereum OI, that the new purchase and that adult investors may be determined by a strategic accumulation position. This trend may not be particularly positive for ETH, because it indicates that the capital may revolve again to the first cryptocurrency.
Ethereum price at a glance
To this writing, the ETH price is about $ 2546, which reflects a decrease of approximately 4 % over the past 24 hours.
