Historic high in open interest for Ether futures: will ETH price head for records?

Historic high in open interest for Ether futures: will ETH price head for records?

In recent weeks, the cryptocurrency market has experienced a significant recovery, with analysts and traders paying the most attention to Ether (ETH) futures contracts. Open interest in these derivatives has reached an all-time high of $20 billion, clearly indicating growing investor interest and confidence in further Ether price growth. At the same time, the ETH price itself has doubled in value since April, fueling speculation of a possible path to further records.

The significant rise in the ETH price and the associated fundamentals

Since April 9, the price of ether has increased by 108%, and is currently hovering around $2,880. This growth is remarkable not only due to the appreciation itself, but also in comparison to the broader cryptocurrency market, which has risen by approximately 49% over the same period. After a long period of stagnation, ETH is thus once again showing that it has the potential to surpass its previous highs.

Open interest in ETH futures at an all-time high

According to Glassnode data, open interest in ETH futures contracts has reached a new record in excess of $20 billion, an increase of 155% since the beginning of April. This phenomenon indicates that traders and investors continue to overbuy futures contracts, sending a clear signal of bullish market sentiment. Rising interest is often a harbinger of further price gains, as demand for derivatives signals increased confidence in future developments.

Strategy and investor confidence

Interestingly, traders are using stablecoins to gain exposure to ETH through futures contracts, reflecting their strategic shift towards risk assets despite the current volatility. At the same time, stablecoin market capitalization has climbed to a new high of $228 billion, indicating increased liquidity and confidence in the cryptocurrency ecosystem.

Technical analysis and outlook

According to technical analysts, a possible breakout in the ether price towards the USD 4,000 level or even the USD 4,200 target is on the horizon thanks to the cup and handle formation, which is considered a strong bullish signal. In the ETH/USD chart, the price is now testing the resistance at $2,800, and if it manages to break it, the way may be open for further growth.

Comparison with Bitcoin and market outlook

While Bitcoin (BTC) has risen 44% over the same period, ETH has risen almost twice as much. The ETH/BTC ratio has appreciated by nearly 50% since April 9, reaching a 14-week high of 0.02623 on Wednesday. This suggests that Ether is starting to gain strength against the largest cryptocurrency, which could be an important signal for future growth.

Conclusion: is this the start of a new bullish period?

Analysts' views are clear: growing open interest in futures contracts and technical signals suggest that a strong bullish structure is beginning to form in the ETH market. Some experts believe that the potential of the entire market is still underestimated and that Ethereum still has significant growth opportunities ahead. If the price breaks key levels, the price of Ether could be on its way to new records.

Summary

- The price of ETH has doubled in value since April to approximately $2,880.

- Open interest in ETH futures contracts has reached an all-time high of over $20 billion.

- The growing interest signals investor confidence and the potential for further growth.

- ETH is strengthening against Bitcoin, confirming the growing interest in altcoins.

- Technical analysis suggests the possibility of a breakout to USD 4,000 and beyond.

The question remains whether the current growth will continue and whether Ether will actually break its previous records. One thing is for sure - the market is full of optimism and investors believe that Ethereum has a long way to go up.

*This is not an investment recommendation.

Coingarage team