Ethereum has experienced renewed trading activity after a recent decline, with its price dropping to around $2,800. After this dip, open interest in ETH futures surged by over $653 million, indicating a resurgence of trader activity as the asset maintains its support levels despite dealing with an 8% drop in price over the last day.

Open Interest Increases After Price Fall

According to analyst Maartunn, the open interest for Ethereum rose by $653.8 million, reflecting a 4% increase shortly after the price hit lower levels. This upsurge in open interest signals that traders are swiftly re-entering the market in response to volatility, as evidenced by the increased futures trading activity during these times.

“ETH Open Interest just jumped +$653.8M (+4.32%) after the recent dip 🎯”
(“Looks like the gamblers are back for another round.” - Maartunn)

The trading volume for ETH has also been robust, reaching over $23.8 billion in the past 24 hours. Interestingly, technical analyses suggest that the asset might be nearing a crucial turning point, as demonstrated by the Stochastic RSI indicating it is heading into a lower range—historically, such conditions have preceded price rebounds.

ETH/BTC Holds Steady

Despite Bitcoin’s retracement, Ethereum has maintained relative stability against it. The ETH/BTC exchange rate is currently situated just above a pivotal support range of 0.03150 to 0.03250 BTC. Michaël van de Poppe noted, "$ETH is nicely consolidating… remaining flat against Bitcoin," in light of this broader market weakness.

Broader Market Insights

Simon Kim, the CEO of Hashed, recently launched a comprehensive dashboard that utilizes an array of 12 different valuation models for Ethereum, estimating its fair value at $4,869. This analysis implies that Ethereum could be undervalued by over 60% compared to current market rates.