Is Altcoin Season Approaching Soon?
A recent analysis by a quant suggests that an altcoin season may be on the horizon based on a pattern emerging in Ethereum Open Interest. The Open Interest metric, which tracks the total number of derivatives positions open on centralized exchanges, is showing interesting trends for both Ethereum and Bitcoin indicators.
- Open Interest:
- Reflects speculators opening or closing positions for a coin
- Increase indicates fresh positions being opened
- Decrease suggests positions being closed or liquidated
- Estimated Leverage Ratio (ELR):
- Compares Open Interest to Exchange Reserve
- Measures leverage users are opting for in the derivatives market
- Recent surge in ELR for Ethereum, flat action for Bitcoin
Signs of Altcoin Season
The data reveals that Ethereum has been outpacing Bitcoin in terms of speculative interest and leverage taken on by users. This shift in indicators could be an early indication that an altcoin season might be on the horizon, with Ethereum leading the way.
If Ethereum continues to consolidate in its current price range, the quant suggests that the altcoin season could kick off sooner than expected. It will be interesting to see how market dynamics unfold in the coming days in light of these developments.
ETH Price Update
After a brief slowdown, Ethereum’s price has started to pick up momentum again, surpassing the $3,900 level in recent trading sessions. The renewed bullish sentiment around ETH is indicative of the growing interest in altcoins and the potential for an altcoin season.
By
By
By
By