Altcoins News

Story: Ethereum Close to Local Bottom? Analyst Flags Binance Open Interest Drop

By Steven Anderson

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Binance Open Interest Declines. According to a recent CryptoQuant Quicktake analysis, Ethereum’s futures open interest (OI) on…

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Futures Data as a Leading Indicator. The analyst explained that futures open interest often acts as a leading indicator for Ethereum’s…

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Institutional Demand Adds Support. While futures metrics show short-term caution, other indicators highlight growing institutional…

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Exchange Reserves Continue to Deplete. Another bullish factor is the steady decline in ETH exchange reserves.

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ETH Price Outlook. At the time of writing, Ethereum trades at $4,491, posting a modest 0.

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Conclusion. Ethereum appears to be entering a crucial phase in its price cycle.

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Ethereum (ETH) continues to capture investor attention after struggling to reach the $5,000 mark in August 2025.

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According to a recent CryptoQuant Quicktake analysis, Ethereum’s futures open interest (OI) on Binance has shown a pattern of sharp declines ahead of local bottoms.

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Over the past three months, local bottoms were typically formed after an average 14.9% decline in Binance ETH OI. In comparison, spot prices registered an average correction of 10.

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For example, on August 17, Binance ETH OI fell from $11.4 billion to $10.2 billion, a 10.52% drop.

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The latest notable decline occurred on September 13, when ETH OI dropped from $11.39 billion to $10.4 billion. Analysts suggest that the metric could still fall to around $9.

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“Spot price rallies supported by the futures side progress more healthily—like a plane flying with two wings,” the analyst noted.

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Between July and September 2025, FMP has remained neutral to positive, suggesting that institutional investors continue to buy Ethereum through futures contracts at premiums over…

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This institutional support could help Ethereum maintain stability above $4,400, while setting the stage for a potential move toward higher targets.

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Another bullish factor is the steady decline in ETH exchange reserves. When tokens are withdrawn from centralized exchanges, it reduces immediate selling pressure, often…

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