Finally, Ethereum is reaching at least some sort of ATH. Unfortunately we have a problem here: it is not the ATH price. But one way or another, it’s something, considering the dull performance the second-largest cryptocurrency has been showing. But don’t worry, the price could go up in the future.
Finally, Ethereum is reaching at least some sort of ATH. Unfortunately we have a problem here: it is not the ATH price. But one way or another, it’s something, considering the dull performance the second-largest cryptocurrency has been showing. But don’t worry, the price could go up in the future.
What even is open interest? It is the total number of open contracts for the asset, such as futures or options. The increase in OI usually suggests a general growth of interest in the asset in the market. But don’t rush to buy it yet as it is not an indicator of crazy growth, it is simply a reflection of increasing volume.
In just three days we saw a massive 30% increase in open interest. The new all-time high of $11 billion was achieved. The key reason behind this is obviously the possible approval of the Ethereum ETF. As the social volume around the topic increases, more people are trying to make quick profits.
Additionally, the fact that funding rates turn positive brings some optimism. With the change, long contracts will begin paying short contract holders a certain amount of interest. With positive funding rates, more traders are likely to bet on the asset’s growth rather than its decline.
Mushumir to the fullestOf course, we should also evaluate the graphics. The price has been rising and with open interest increasing, it is no surprise that many investors are returning to Ether. Key moving averages like 50,100 and 200 days were broken, which is hopefully an obvious indication of an upcoming bull market.
As for the secondary indicators, the volume is currently increasing, suggesting trading activity. The price jump was supported by an adequate market reaction, so there are no surprises. In fact, Ethereum could rise a little higher, but don’t forget to protect yourself against an unexpected drop, which can always happen in the market.
