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Breaking News: Bitcoin Price Falls Under $100,000: Elliott Wave Analysis Forecasts Decline To $70,000
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Breaking News: Bitcoin Price Falls Under $100,000: Elliott Wave Analysis Forecasts Decline To $70,000

Ethereum Close To Local Bottom? Analyst Flags Drop In Binance Open Interest

Ash Tiwari
Ash Tiwari
Last Updated: September 18, 2025 5:00 am
3 mins read
ethereum

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After failing to hit a new all-time high (ATH) of $5,000 in August 2025, Ethereum (ETH) may finally be ready to breach the psychologically important price level. A decline in Binance open interest suggests that ETH is likely close to a local bottom, ready for its next leg up.

Ethereum Open Interest Declines, Is Local Bottom Close?

According to a CryptoQuant Quicktake post by contributor burakkesmeci, Ethereum may be nearing a local bottom. The analyst referred to the Binance ETH open interest (OI) hourly timeframe metric for their analysis.

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In their analysis, burakkesmeci noted that according to the Binance ETH OI metric, local bottoms have formed with an average decline of 14.9% over the past three months. On the spot market side, these corrections have typically resulted in an average 10.7% decline.

The analyst said that drops in ETH OI have usually signaled spot price corrections ahead of time. For example, on August 17, the Binance ETH OI decreased from $11.4 billion to $10.2 billion, representing a 10.52% drop.

Similarly, on August 20, the Binance ETH OI tumbled from $13 billion to $9.7 billion, a correction of 25.38%. The latest major tumble in Binance ETH OI was observed on September 13, when it crashed from $11.39 billion to $10.4 billion. The analyst concluded:

So, we can say this: when spot price rallies are supported by the futures side, the trend progresses more healthily – just like a plane flying with two wings. In the opposite scenario, OI signals potential corrections. Binance ETH OI (measured on the highest-volume exchange, acting as a leading indicator) gives us a chance to catch local bottoms early.

The analyst added that based on the recent trends, it can be speculated that the Binance ETH OI may dwindle to $9.69 billion. It also suggests that ETH is currently in the local bottom zone. However, the ETH price may fall further before it finds its local bottom.

cq1
Source: CryptoQuant

Is ETH Eyeing $6,800?

Meanwhile, fellow CryptoQuant analyst, PelinayPA, noted that Fund Market Premium (FMP) has remained mostly neutral or positive between July and September 2025 – indicating renewed institutional demand. Over the same period, ETH has surged from $2,500 to $4,400.

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Ethereum To $6,800 By Year End? CME Futures Data Shows Record Institutional Demand

1 month ago

For the uninitiated, the FMP in Ethereum’s context measures the price gap between futures contracts and the spot market. Currently, with positive premiums dominating, the market is showing strong institutional support for ETH. PelinayPA added:

This environment could help Ethereum maintain stability above $4.4K and potentially sustain further upside momentum. Major target $6,8K.

In addition, ETH exchange reserves continue to deplete at a rapid pace. Recent analysis by another CryptoQuant contributor named Arab Chain forecasted ETH to touch $5,500 in September.

That said, the current pause in ETH’s rally remains a point of concern. At press time, ETH trades at $4,491, up 0.8% in the past 24 hours.

ethereum
Ethereum trades at $4,491 on the daily chart | Source: ETHUSDT on TradingView.com
Featured image from Unsplash, charts from CryptoQuant and TradingView.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Read more

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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