Recently, the second largest cryptocurrency, Ethereum (ETH), has experienced significant selling pressure, causing its price to decline. Despite attempting to surpass $3,700, Ethereum‘s price could not hold, leading to a partial pullback. However, an increased demand for Ethereum futures contracts relative to Bitcoin suggests a possible price increase in the near future.
Ethereum Futures Open Interest
According to information from CoinGlass, the Ethereum futures open interest has reached $15 billion. This significant increase indicates that investors hold a bullish outlook on Ethereum and plan to continue their optimistic stance. Additionally, long positions in CME Ethereum futures have also grown noticeably.
The funding rates and Open Interest figures work together to show the degree of confidence among traders when making trades. Typically, larger positive values in these measures suggest a bullish outlook and heightened activity within the perpetual market.
Based on these metrics, the market indicates that Ethereum is likely to experience a significant change in the near future, increasing the likelihood of adding long positions in the continuous market. This suggests a optimistic view for Ethereum’s price trend, possibly pushing it back up to its record high.
ETH Price Action Ahead
An additional sign of growing optimism for Ethereum is reflected in its spot market indicators. One such indicator, the MACD line, has crossed above the signal line for the first time since March 15th. This event suggests that the bullish trend is gaining strength.
In simple terms, Ethereum’s price staying above $3,400 supports the optimistic outlook. If buying continues, Ethereum might reach $4,500 or even $5,000 in the next few weeks. However, there’s resistance around $3,800, and a clearance of $4,080 could lead to further gains.
Jan Van Eck, head of VanEck, and Jean-Marie Mognetti, leader of CoinShares, have expressed doubts that the U.S. Securities and Exchange Commission (SEC) will give approval for a Ethereum spot exchange-traded fund (ETF) by the year 2024.
Instead, JPMorgan strategists, headed by Nikolaos Panigirtzoglou, hold a positive view that the SEC will give the green light to Ethereum spot ETFs eventually, even if it may not happen as soon as May.
The cost of Ethereum dropped beneath $3500 following the unveiling of the US Consumer Price Index, yet it has managed to stay above the $3400 mark. In the previous 24 hours, there was a decrease of 5% in ETH‘s price with a lowest point of $3410 and a highest point of $3638.
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2024-04-10 20:03