Ethereum (ETH) Nearing Potential Local Minimum According to Experts as Open Interest on Binance Witnesses a Downward Trend

Ethereum (ETH) Nearing Potential Local Minimum According to Experts as Open Interest on Binance Witnesses a Downward Trend

In the world of cryptocurrencies, Ethereum (ETH) continues to be a topic of interest for traders and analysts alike. According to recent data, the digital asset has shown a significant surge over the past three months, rising from $2,500 to $4,400.

However, the Ethereum rally has currently paused, causing some concern among investors. One analyst, whose identity remains undisclosed, has suggested that Ethereum may be nearing a local bottom, as reported by CryptoQuant's Quicktake post.

A closer look at the market reveals that with positive premiums dominating, there is strong institutional support for Ethereum. This is evidenced by the Fund Market Premium (FMP) remaining neutral or positive between July and September 2025, according to another analyst, PelinayPA, from CryptoQuant.

The market correction, when it occurs, typically results in an average decline of 10.7% on the spot market side. This was observed recently on August 20, when Binance ETH open interest fell by 25.38%. The last major drop in Binance ETH open interest was observed on September 13.

The analysis was based on Binance's ETH open interest hourly time metric. It's worth noting that a decline in ETH open interest usually signals a correction in the previous spot price. Over the past three months, Binance's ETH open interest has shown an average decline of 14.9%.

Exchange reserves of Ethereum have also shown a rapid decline, another indicator that could suggest a potential market correction. As of September 19, 2025, Ethereum is trading at $4,491, up 0.8% in the last 24 hours.

It's important to remember that crypto trading activities are subject to high risk and volatility. The Disclaimer states that all activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

This article was published by NewsBTC on September 19, 2025. While there are no search results indicating which analyst claimed on this date that Ethereum had reached a local bottom, the overall market trends suggest a potential correction in the near future. Keep a close eye on Ethereum and the broader crypto market for further developments.

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