After failing to hit a new all-time high (ATH) of $5,000 in August 2025, Ethereum (ETH) may finally be ready to breach the psychologically important price level. A decline in Binance open interest suggests that ETH is likely close to a local bottom, ready for its next leg up. Ethereum Open Interest Declines, Is Local Bottom Close? According to a CryptoQuant Quicktake post by contributor burakkesmeci, Ethereum may be nearing a local bottom. The analyst referred to the Binance ETH open interest (OI) hourly timeframe metric for their analysis. Related Reading: Ethereum Marches Upward Without Leverage Overheating – Sign Of Structural Health? In their analysis, burakkesmeci noted that according to the Binance ETH OI metric, local bottoms have formed with an average decline of 14.9% over the past three months. On the spot market side, these corrections have typically resulted in an average 10.7% decline. The analyst said that drops in ETH OI have usually signaled spot price corrections ahead of time. For example, on August 17, the Binance ETH OI decreased from $11.4 billion to $10.2 billion, representing a 10.52% drop. Similarly, on August 20, the Binance ETH OI tumbled from $13 billion to $9.7 billion, a correction of 25.38%. The latest major tumble in Binance ETH OI was observed on September 13, when it crashed from $11.39 billion to $10.4 billion. The analyst concluded: So, we can say this: when spot price rallies are supported by the futures side, the trend progresses more healthily – just like a plane flying with two wings. In the opposite scenario, OI signals potential corrections. Binance ETH OI (measured on the highest-volume exchange, acting as a leading indicator) gives us a chance to catch local bottoms early. The analyst added that based on the recent trends, it can be speculated that the Binance ETH OI may dwindle to $9.69 billion. It also suggests that ETH is currently in the local bottom zone. However, the ETH price may fall further before it finds its local bottom. Is ETH Eyeing $6,800? Meanwhile, fellow CryptoQuant analyst, PelinayPA, noted that Fund Market Premium (FMP) has remained mostly neutral or positive between July and September 2025 – indicating renewed institutional demand. Over the same period, ETH has surged from $2,500 to $4,400. Related Reading: Ethereum To $6,800 By Year End? CME Futures Data Shows Record Institutional Demand For the uninitiated, the FMP in Ethereum’s context measures the price gap between futures contracts and the spot market. Currently, with positive premiums dominating, the market is showing strong institutional support for ETH. PelinayPA added: This environment could help Ethereum maintain stability above $4.4K and potentially sustain further upside momentum. Major target $6,8K. In addition, ETH exchange reserves continue to deplete at a rapid pace. Recent analysis by another CryptoQuant contributor named Arab Chain forecasted ETH to touch $5,500 in September. That said, the current pause in ETH’s rally remains a point of concern. At press time, ETH trades at $4,491, up 0.8% in the past 24 hours. Featured image from Unsplash, charts from CryptoQuant and TradingView.com Source: newsbtc.com (Read Full Article)

On-chain data shows the Dogecoin whales have gone on a notable selling spree recently, potentially explaining the decline DOGE has seen since its $0.307 high. Dogecoin Whales Have Reduced Holdings By 680 Million Tokens In a new post on X, analyst Ali Martinez has discussed about the latest trend in the Supply Distribution of the Dogecoin whales. The “Supply Distribution” here refers to an indicator from on-chain analytics firm Santiment that tells us about the total amount of the DOGE supply that a given wallet group is holding right now. Related Reading: Bitcoin Touches $117,000 As Binance Records 9 Days Of Outflows Investors or addresses are divided into these cohorts based on the number of coins that they are currently carrying. For example, a holder with 5 DOGE is put into the 1 to 10 tokens bracket. In the context of the current topic, whales are the investors of interest. These entities are typically defined as those holding between 100 million to 1 billion DOGE. At the current exchange rate, the range’s lower end converts to $26.4 million, while the upper one to $264 million. Thus, only the holders that have a substantial amount of capital invested into the memecoin would qualify for this group. As such, the behavior of the cohort in the form of its Supply Distribution trend can be worth keeping an eye on, as if nothing else, it can inform us about the sentiment among DOGE’s most influential investors. Now, here is the chart shared by Martinez that shows how the Supply Distribution of the Dogecoin whales has changed over the last few weeks: As displayed in the above graph, the Supply Distribution of this Dogecoin group has witnessed a sharp decline over the past few days, indicating that its members have participated in some net selling. In total, the DOGE whales offloaded 680 million tokens (worth around $181 million) over a four-day span during this selloff. From the chart, it’s visible that the distribution began alongside DOGE’s recovery run to the $0.307 mark. As whales have continued to sell, the memecoin’s price has plunged, currently sitting around 13% down compared to the earlier high. The trend in the indicator could now be to monitor in the coming days, as what these humongous investors do next could also have an impact on the cryptocurrency’s value. Related Reading: Bitcoin Trend Constructive As Long As This Metric Holds, Glassnode Says Whales of Dogecoin aren’t the only ones that have participated in distribution recently. As the analyst has pointed out in another X post, XRP has also been facing selling pressure from its big-money investors. Over the last couple of weeks, XRP whales have shed 200 million tokens from their holdings, worth a total of $605.5 million at the current price. DOGE Price At the time of writing, Dogecoin is floating around $0.264, up 1.5% over the last 24 hours. Featured image from Dall-E, Santiment.net, chart from TradingView.com Source: newsbtc.com (Read Full Article)