Brace For Market Impact: Ethereum Open Interest Has Reached A New All-Time High
March 29 2024 - 10:00AM
NEWSBTC
Ethereum has, for the most part, established a foothold above the
$3,500 price level throughout the week as investors continue to
anticipate a return to the $4,000 mark. Interestingly, the optimism
has seen the open interest of Ethereum surging to new highs. The
surge in open interest, although a bullish sentiment indicator, can
also serve as a bearish signal of an impending change in market
trend. Ultimately, this metric added to the current dynamics
of the Ethereum ecosystem, including regulatory uncertainty and
scalability concerns hinting at a complicated price trajectory for
the price of Ethereum. Ethereum Open Interest Reaches New High Open
interest is an efficient method for tracking the total number of
open positions in a particular contract. Recent market dynamics and
institutional investor interest have seen the total open interest
in Ethereum futures surging above records set in the 2021 bull
market phase. Related Reading: The Bulls Are Back: Spot Bitcoin
Inflows Surge With New Records According to data from Coinglass,
the open interest on Ethereum futures, which has been on a surge
since February 5, recently set a new high of $14.11 billion on
March 15. This wasn’t particularly surprising, as a strong buying
momentum from the bulls in the prior days saw the price of Ethereum
surging past the $4,000 mark for the first time in two years.
However, Ethereum has since reversed from the $4,000 price level
and is currently trading below $3,600. On the other hand, the total
open interest on Ethereum contracts has maintained around its
all-time high level, which allowed it to cross over $14.10 billion
again on March 28. The open interest weighted average also went up
to 0.0462%, indicating an increase in the demand for leveraged ETH
long positions. The majority ($4.55 billion) in the Ethereum
futures market were registered on cryptocurrency exchange Binance.
Bybit and OKX came in second and third, with $2.39 billion and
$1.94 billion respectively. Interestingly, CME’s Ether futures also
surged to $1.3 billion. At the time of writing, the CME’s Ether
futures now sit at $1.31 billion, reiterating the committed
bullishness among institutional investors. What’s Next For ETH?
Ethereum has been trading flat since the beginning of the week and
is currently on a 0.78% gain in the past seven days. All eyes are
now on reports of the SEC looking into Ethereum’s security status,
the industry awaits an official ruling similar to the one that was
handed down in the XRP case that will finally provide clarity to
the regulatory landscape. Related Reading: Shiba Inu Going To
$0.0001: Crypto Analyst Reveals What Will Drive The Rally At the
same time, investors continue to await the SEC’s decision regarding
the applications of Spot Ethereum exchange-traded fund (ETF) in the
US. According to a Bloomberg senior analyst, the likelihood of
approval is only 25%. ETH price drops to $3,500 | Source: SHIBUSD
on Tradingview.com Featured image from Money, chart from
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