BTC ETH Let me explain why ETH is starting to gain strength from the perspective of open interest, for your reference: Open interest is the most effective tool to observe the dynamics of contract users in the market. Open interest can be viewed from two angles: USD value and coin quantity, and both need to be analyzed together. When open interest (coin) and price are positively correlated, it often leads to an upward trend. As the accumulated quantity grows large enough, it indicates that funds chasing the rally remain active and haven’t realized the risks to exit. At the same time, it also shows that major short positions are continuing to increase. If the market enters a consolidation phase at this point, the upward trend will stop, and after the consolidation, the trend will reverse and start to decline. When open interest (coin) and price are negatively correlated, it often leads to a downward trend. As the accumulated quantity grows large enough, it indicates that funds driving the sell-off remain active and haven’t realized the risks to exit. At the same time, it also shows that major long positions are continuing to increase. If the market enters a consolidation phase at this point, the downward trend will stop, and after the consolidation, the trend will reverse and start to rise. Currently, ETH’s open interest (coin) and price are showing a clear negative correlation. This indicates that the funds driving the sell-off and the buying funds in the market are increasing. If ETH’s open interest continues to grow during its consolidation phase, the downward trend will stop, followed by a significant rebound. The signal for the end of the rebound will be when the newly added open interest starts to decrease sharply. Finally: Whether in a bear market or a bull market, the market will always punish those who chase rallies and sell-offs after the fact. These players are collectively known as the emotional crowd. A typical representative of the emotional flow is Ni Dog @Phyrex_Ni;