Ethereum (ETH) Close to a Local Bottom? Analysts Highlight the Decline in Open Interest on Binance

Jakarta, Pintu News – After failing to reach a new record high of $5,000 in August 2025, Ethereum (ETH) seems poised to break through an important psychological price level. A drop in open interest on Binance suggests that ETH may be close to a local bottom, ready for the next leg up.

Ethereum Open Interest Drops, Is a Local Bottom Near?

According to CryptoQuant’s Quicktake post by contributor burakkesmeci, Ethereum (ETH) may be nearing a local bottom. The analyst referred to Binance’s ETH open interest hourly time metric for his analysis.

In his analysis, burakkesmeci noted that based on the Binance ETH open interest metric, a local bottom has formed with an average decline of 14.9% over the past three months. On the spot market side, this correction typically results in an average decline of 10.7%.

Also Read: 5 Reasons Crypto Liquidation Risk Could Break Records in September 2025

Open Interest as an Indicator of Price Correction

The analyst stated that a decline in ETH open interest usually signals a correction in the previous spot price. For example, on August 17, Binance’s ETH open interest decreased from $11.4 billion to $10.2 billion, representing a 10.52% drop.

Similarly, on August 20, Binance ETH open interest fell from $13 billion to $9.7 billion, a correction of 25.38%. The last major drop in Binance ETH open interest was observed on September 13, when it fell from $11.39 billion to $10.4 billion. The analyst concluded:

Potential Ethereum Price Rise to $6,800?

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

For the uninitiated, FMP in the context of Ethereum measures the price difference between futures contracts and the spot market. Currently, with positive premiums dominating, the market is showing strong institutional support for Ethereum (ETH).

Also Read: 5 Reasons Crypto Liquidation Risk Could Break Records in September 2025

Stability and Potential of Ethereum

With strong institutional support and a rapid decline in exchange reserves, Ethereum (ETH) has the potential to touch $5,500 by September. However, the current pause in the Ethereum rally remains a point of concern. Currently, Ethereum is trading at $4,491, up 0.8% in the last 24 hours.

Also Read: 5 UK-US Crypto Cooperation Agenda that Could Accelerate Stablecoin Adoption

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Reference

• NewsBTC. Ethereum Bottom in Place, Analyst Says as Binance Open Interest Hits Record High. Accessed on September 19, 2025