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Ethereum: open interest ATH pushes ETH
By Davide Grammatica
Ethereum futures open interest hit a new all-time high: more investors are betting on ETH's rise
ETH prepares for revival
The Ethereum derivatives market is unveiling a certain amount of investor euphoria, which has helped, in recent days, to push theopen interest of ETH futures to their all-time high ($20.8 billion).
This follows a slight rise in Ethreum over the past day, with a local high at $3,400, which, along with rising volumes in ETH spot ETFs, appears to have convinced investors to raise on the asset, swelling the total number of outstanding contracts in the derivatives market.
As CryptoQuant reports, long positions have largely increased, suggesting that upward price movement is expected in the short term.
In the past 4 months alone, open interest has reportedly increased by 40 percent, with a significant increase in the use of leverage as well, which is being exploited by traders to amplify potential returns in the face of greater liquidation risks.
Ethereum Derivatives Market Signals Bullish Momentum
“Ethereum's open interest has surpassed its previous ATH (all-time high), exceeding the $13 billion mark—an increase of over 40% in the past four months.” – By @EgyHashX
Full post 👇https://t.co/3DfUxb2x1R pic.twitter.com/tYHqkbSTJC
— CryptoQuant.com (@cryptoquant_com) November 20, 2024
ETH's awakening to a possible new alt-season
The activity of traders, however, also seems to be justified by improving fundamental data in the ecosystem. Indeed, a significant increase in on-chain volumes is also noted in November, jumping 85 percent in just two weeks to touch $7.13 billion daily.
Contributing to these figures are ETFs, as reported earlier, but also the market’s general newfound confidence following Trump’s election, which is clearly not exclusive to Bitcoin.
With the $100k on the horizon for BTC, there could be no shortage of responses from the altcoin front (which nevertheless remains tentative in terms of performance), and indeed Ethereum and Solana answer “present” at the call on all of them.
Analysts seem to agree that BTC will be able to touch ATH well beyond the $100k support, but at the same time they warn of the risks derived from increased volatility, caused in prospect by the possible liquidation of numerous leveraged positions.
