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Ethereum (ETH) has seen a price dip of 7.5% this week, but some analysts still view it as a strong long-term investment option. This belief is reinforced by the Ethereum derivatives market reaching a new high this year, indicating a strong ongoing trend. The open position, which measures the total number of buy and sell orders, contributes to this. However, trading activities seem to be decreasing, despite increasing interest in Bitcoin ETFs. Over the last three weeks, Ethereum ETFs recorded a net gain of $75 million, underperforming compared to Bitcoin ETFs.

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Ethereum (ETH) has taken a 7.5% price hit this week after it didn’t manage to recover as quickly as Bitcoin (BTC) and other prominent digital currencies. Despite this, some analysts believe that Ethereum is still a good long-term bet, as its price is currently in a strong demand zone.

Web3 specialist and independent trader, Mando CT, shared his insights with his followers on X, emphasizing the need for patience when investing in Ethereum. He pointed out that Ethereum is still a good buy for those planning to hold onto it for a while, adding that when Ethereum’s price shoots up, it usually takes the rest of the market with it, generating a lot of activities in altcoins and giving the entire crypto ecosystem a boost.

Meanwhile, technical analyst Kyledoops from Crypto Banter pointed out that the number of Ethereum traded on derivatives platforms surged by 96,000 ETH recently. Large inflows like this can spark a lot of market activity, sometimes leading to wild price swings. He suggests that this spike could signal a wave of price corrections or significant changes in the market.

As for the Ethereum derivatives market; it’s pretty lively. Data shows Ethereum’s open position reaching a new yearly high this month. To put it simply, open position refers to the total number of buy and sell orders in the market, and the total value of those orders. A high number of open orders usually indicates a strong ongoing trend.

However, it’s important to note that spot volumes CVD – basically, the amount of Ethereum being bought and sold – are going down. This sign of dwindling trading activities among investors on exchanges like Binance, Bybit, and OKX came despite increasing interest in Bitcoin ETFs among institutions.

Over the last three weeks, Ethereum ETFs brought in a net gain of $75 million. Unfortunately, this ESLF underperformed compared to Bitcoin ETFs. It’s clear that institutions are more comfortable building positions in Bitcoin ETFs than with Ethereum’s.

On the daily chart, Ethereum’s price is forming a downwards triangle. Since early August, Ethereum’s price has bumped against its resistance range of $2,750-$2,850 several times, but it continues to form bullish lower highs. That means each new peak in price is higher than the last one which bodes well for the future.

Ethereum’s price took a sharp dive recently, falling to $2,450. But it’s currently recovering from this dip, and it’s key that it stays above the rising trend line. Remember, this article isn’t investment advice. Always do your own research before investing.

Source: Cointelegraph