Ethereum has had a strong run in August, pushing close to $5,000 before cooling off. Right now, ETH is trading around $4,648, and traders are watching closely to see if the momentum continues or if the market takes a breather first.
The last 24 hours have brought some interesting shifts in open interest, long and short positioning, and overall volume – and they could tell us where ETH is headed next.
After weeks of steady gains, ETH hit resistance just below $5,000 and pulled back slightly. The price is still holding well above the $4,500 mark, but the indicators suggest the market is pausing before deciding its next move.
What you'll learn 👉
Open Interest Cooling Off
Open interest had been rising steadily through August, showing that traders were piling into positions during the rally. But now, OI has started to flatten and dip slightly. That’s usually a sign that traders are closing out leveraged bets and waiting for a clearer signal.
If OI continues to fall, ETH could move sideways or test lower support levels in the short term.
Longs Fading, Shorts Rising
Net long positions are trending down. Many traders who rode the rally are locking in profits or cutting exposure. At the same time, net shorts have been climbing, meaning more traders are betting against ETH at these prices.
This setup often points to a pullback. But it can also create the conditions for a sharp reversal if shorts get caught off guard and forced to cover.
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What to Expect in the Next 24–48 Hours
Right now, ETH looks like it’s entering a short-term correction phase. A dip to $4,500–$4,400 wouldn’t be surprising if selling pressure picks up. That would still keep Ethereum in a healthy range after its recent rally.
On the flip side, if ETH holds above $4,600 and volume returns, the heavy short positioning could fuel a squeeze that sends the price quickly back toward $4,800–$5,000.
For the next couple of days, ETH will likely trade between these levels, with risk tilted slightly to the downside before a possible bounce.
Ethereum may not be making headlines like Bitcoin right now, but the chart shows it’s at an important point. If support holds, ETH could be setting the stage for another attempt at breaking through $5,000 – but for now, traders should be ready for more back-and-forth action.
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