The overall crypto market is currently experiencing a bearish phase; however, Ethereum has successfully led the growth of the stablecoin market cap over the past week. Data indicates that Ethereum’s stablecoin market capitalisation experienced an increase of $243.4 million, with Arbitrum One following at $108.6 million and Base at $51.1 million. Together, these three networks experienced an increase of $403.1 million in stablecoin market capitalisation over the past week. However, this growth does not necessarily indicate that a greater number of users are joining these networks or that there will be a rise in price.
This is because ETH was trading at $2,492.27 at press time after a modest drop in the past 24 hours but a 7.1% decline over the past week. Interestingly, this follows a recent report, which indicated that ETH has established a new support range between $2,535 and $2,559, with $2,565 identified as a significant level to monitor. Concurrently, the RSI was positioned marginally above the neutral line, indicating the presence of bulls, albeit lacking significant strength. Whereas, the narrowing Bollinger bands suggested low volatility and price consolidation. Meanwhile, the ETH ETFs experienced outflows totalling $634.80 million in October to date.
Additionally, Ethereum’s derivatives market for the month of October indicates that leveraged positioning is starting to moderate. According to the chart, Ethereum’s total Open Interest in USD experienced a significant increase from approximately $12 billion in mid-August to nearly $18 billion by late September, suggesting a heightened level of capital allocated to existing ETH futures and derivatives positions. However, open interest subsequently declined, reaching approximately 15.42 billion by the 10th of October.
Meanwhile, the Network Realised Profit/Loss indicator exhibited volatility around the zero mark throughout October, experiencing intermittent positive and negative fluctuations before approaching -121K. For Ethereum, the pivotal inquiry at this juncture is whether open interest stabilises in response to fluctuations in ETH prices or persists in its downward trajectory. This, in turn, could assist in ascertaining whether traders are reinstating their conviction or adopting a more cautious stance.
