Ethereum (ETH) futures open interest rose to an all-time high of $16 billion amid the recent rally in the overall cryptocurrency market.
This surge comes as major altcoins attempt to recapture the $4,000 price level and reach the all-time high of $4,891, recorded three years ago.
Ethereum futures traders place multiple buy orders
At the time of writing, ETH futures open interest was $16 billion. Its recent uptrend began on May 19 and has since increased by 45%.
ETH futures open interest measures the total number of futures contracts of the coin that have yet to be settled or closed. When it rises like this, it indicates an increase in market participants entering new positions.
Assessed year-to-date, ETH open interest is up 69%.
Open interest on Ethereum futures. Source: Coinglass
Furthermore, the increase in open interest of ETH futures is accompanied by a positive funding rate. At the time of this writing, the ETH funding rate was 0.014%.
The financing rate refers to the periodic payment made between traders in the futures market of an asset to ensure that the contract price remains close to the spot price.
When the funding rate is positive, traders holding long positions pay those with short positions. This usually occurs when the futures price is higher than the spot price. Indicates greater demand for buying than selling.
Read More: 9 Best Places to Stake Ethereum in 2024
Ethereum funding rate. Source: Coinglass
The combined readout of ETH’s rising open interest and positive funding rate suggests significant bullish activity in the coin’s futures market. This means that the number of market participants opening new positions and holding the altcoin waiting for a rally is increasing.
ETH Price Prediction: The Yeses Have It
Confirming the ongoing bullish trend, ETH’s Relative Strength Index (RSI) was in a bullish trend at the time of writing. With a value of 71.21, the momentum indicator signals that market participants prefer to accumulate more ETH rather than sell their coins.
Additionally, the coin’s Chaikin Money (CMF), which tracks the flow of liquidity into and out of the ETH market, was above the central zero line at 0.22.
A CMF above zero indicates market strength, suggesting high capital inflow.
Ethereum analysis. Source: TradingView
If the influx of “new money” into the ETH market continues to increase, the coin could leave the $3790 level behind to trade at $3838.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum analysis. Source: TradingView
However, if profit-taking activity occurs and the bears re-emerge, the price of ETH could drop to $3633.
