According to an analyst, there may be a pattern of the Open Interest and Bollinger Bands that Ethereum has followed in recent years.
Ethereum Open Interest & Bollinger Bands May Have Correlation
As explained by an analyst in a CryptoQuant post, the pattern of the ETH Open Interest and Bollinger Bands may be used to analyze the market’s movements. The first of these metrics, the “Open Interest,” refers to a measure of the total amount of Ethereum futures contracts that are open on all derivative exchanges.
When the value of this indicator is high, it means that the investors currently have a large number of positions in the market currently. Generally, during such conditions, the total leverage in the market is also high, which can lead to the price displaying volatility.
On the other hand, low values imply the futures market doesn’t have that many positions open right now, which can naturally result in the price becoming…
