At last, Ethereum is approaching an ATH of sorts. Sadly, there is a problem with this: the pricing is not ATH. In any case, given the lacklustre performance the second-largest cryptocurrency has been exhibiting, it is something. But don’t worry, the price could eventually catch up.
Open interest—what is it, exactly? It is the total number of open contracts, such as futures or options, for the asset. An increase in OI often indicates a rise in market interest in the asset as a whole. However, since it is only a reflection of the increasing volume and not a sign of some insane increase, you shouldn’t hurry to buy it just yet.
We witnessed an enormous 30% increase in open interest in only three days. At $11 billion, the new all-time high was achieved. Naturally, the Ethereum ETF’s possible approval is the main driver driving it. Ever since the issue has become more popular on social media, more individuals are attempting to make quick money.
Positive financing rates can introduce a certain amount of optimism. Longs will begin paying short contract holders a specific amount of interest upon the flip. Positive financing rates encourage more traders to wager on the asset’s rise as opposed to decline.
Naturally, we ought to assess the charts as well. It is hardly surprising that many investors are returning to Ether given the recent price surge and spike in open interest. Important moving averages, such as the 200-day and the 50-day, were breached, which is presumably a clear sign of an impending bull market.
Regarding secondary indications, there is a recent spike in volume that suggests trading activity. There were no shocks because the price increase was supported by a sufficient market response. Ethereum may really rise a little bit more, but don’t forget to protect yourself in case the market has an unanticipated collapse.
