Ethereum price could surge as interest shifts from Bitcoin

Recent data suggests that Ethereum (CRYPTO:ETH) may capitalise on the declining interest in Bitcoin (CRYPTO:BTC), with indicators pointing towards a potential capital rotation from BTC to altcoins like ETH.

Despite a recent 2% drop in ETH’s price, similar to BTC’s movement, market interest in Ethereum appears to be on the rise. 

This shift raises the possibility that traders are beginning to focus more on Ethereum for potential returns.

On August 26, Bitcoin's open interest (OI), which tracks the flow of money in and out of the crypto market, was over $12 billion. 

However, this figure has since dropped to $11.55 billion, indicating a reduction in net positioning. 

In contrast, Ethereum's OI has increased from $5.25 billion to $5.38 billion over the same period.

This rise in Ethereum’s OI suggests that traders are gaining more exposure to ETH, likely anticipating better returns compared to Bitcoin.

Beyond the derivatives market, there is also growing interest in Ethereum on the spot market.

According to data from IntoTheBlock, participants on top exchanges are more inclined to buy ETH rather than rotate capital out of it.

This is evident in the buying volumes on exchange order books, where participants are bidding for 185,700 ETH at an average price of $2,687 each.

These bids slightly exceed the volume of sell orders, indicating a potential for a price bounce if the buying trend continues.

Ethereum's daily chart shows a sharp downtrend from $3,392 to $2,109 in early August, followed by a consolidation phase. 

Key support at $2,556 suggests that ETH may not drop further in the short term.

The Commodity Channel Index (CCI) also indicates that ETH’s current price of $2,647 is below its fair value, suggesting it could be undervalued and presenting a buying opportunity.

If Ethereum can break through the $2,810 resistance, it might begin an upswing that could push its price above $3,000, with a potential target of $3,360.

However, failure to overcome this resistance could see ETH retest lower support levels around $2,556.

At the time of writing, the Ethereum price was $2,441.39, and Bitcoin price was $59,078.78.