Ethereum Price Volatile Amid Trump's Crypto Remarks, Open Interest Drops 27%

Donald Trump's recent remarks on cryptocurrency have injected a wave of optimism into the market, particularly for Ethereum. The price of Ethereum has been cautiously moving as investors and traders attempt to decipher the implications of Trump's pro-crypto statements. During his speech, Trump emphasized the importance of America leading the cryptocurrency sector, which has bolstered investor confidence. However, Ethereum's bullish trend has shown signs of instability, with traders closely monitoring reversal points near the critical $1,850 barrier.

Ethereum's vulnerability has increased as its open interest has dipped below the crucial $20 billion threshold. Open interest, which measures the total number of outstanding derivative contracts, serves as a key indicator of market activity and trader sentiment. The decrease in open interest reflects investors reducing speculative bets in leveraged positions due to heightened market uncertainty, despite Trump's indications of positive regulatory support.

Market players in the Ethereum ecosystem remain cautious, with the political atmosphere creating a mix of optimism and hesitancy. The near-term decline in open interest suggests that traders are wary of upcoming market fluctuations, even though Trump's speech has instilled long-term market confidence. Ethereum's price holding around $1,850 indicates a period of market indecisiveness, driven by economic uncertainties and regulatory unpredictability, which has led to a decrease in derivatives trading activity. The recent market downturn saw Ethereum's open interest fall by 27% to $23.36 billion, signaling a decline in market activity and trader sentiment. The future movement of Ethereum will depend on key support and resistance areas, which need to be analyzed through current chart analysis.

Analysts have noted significant structural changes in the Ethereum/US Dollar price on Binance's 5-minute chart, enabling more accurate short-term price projections. Ethereum has maintained a declining price movement, generating lower high and lower low patterns centered around the essential support level at $1,960. A decisive confirmation that $1,985 served as a higher high occurred when the price closed as an immediate breach of the descending trendline below $1,960. A complete bullish trend conversion took place when Ethereum validated its price action above $1,965, showing upward momentum.

Indicators further support this bullish sentiment. The Relative Strength Index displayed consistent signals of spending pressures at the $1,955-$1,960 price area and reached its peak overbought state around $1,985, confirming strong buying momentum. The MACD generated crucial golden cross patterns after the breakout, which later displayed a death cross, signaling possible minor market retreats. The short-term outlook for Ethereum's price prediction remains bullish, as it needs to uphold support at levels between $1,960-$1,965. If the $1,985 resistance passes a successful retest, the crypto is likely to move toward the $1,990 psychological mark. Conversely, if the price falls below the $1,960 support level, it could start a bearish trend. Positive trends currently dominate the market, and the current Ethereum price forecast shows promising signs.

The recent stoppage of Fidelity’s Ethereum ETF inflows indicates a conservative outlook from investors in response to changing market conditions. Technical signal indicators confirm that positive price trends will boost Ethereum’s short-term value in the near future. The price of Ethereum shows positive momentum as RSI and MACD signals confirm bullish trends, with support remaining above $1,960. This suggests that Ethereum will attempt to reach resistance between $1,985 and $1,990. The optimistic Ethereum price prediction depends on support levels remaining intact, despite traders needing to watch for possible downward movements below $1,960.