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Today the price of Ethereum’s Ether (ETH) hit a two-year high according to data from the crypto trading terminal Crryptowatch. Despite the breakout at $ 445, open interest on ETH futures remains stable at a new all-time high of $ 1.5 billion.
ETH-USD 4-hour chart. Source: TradingView.com
The record high open interest on ETH futures suggests that traders remain bullish and further gains could be seen in the coming days.
In recent months, Ethereum has experienced strong momentum due to the explosive growth of the decentralized finance industry. The demand for Ether has led to a sharp increase in gas (transaction fees) and this probably added to the demand for Ether.
On August 11, Santiment reported that Ether commissions hit an all-time high in terms of both ETH and USD. Since users have to buy ETH to pay taxes to miners, it may have acted as a catalyst for the rally. Researchers at Santiment he wrote:
“On Tuesday, #Ethereum fees hit all-time highs in both $ USD and $ ETH. Since reaching this record statistic, the # 2 market cap #crypto asset has increased by + 13% and sentiment remained positive. This indicates that although traders obviously prefer lower fees, the ramifications on people’s willingness to transact through an asset they believe in (at least in the short term) are quite minimal. “
Following Ether’s two-year breakout, traders generally expect a stronger bullish trend. A well-known trader called “Satoshi Flipper” said there is no strong resistance for ETH up to $ 780. He She said:
“2 years ETH spent in that range and we finally broke no resistance down to $ 780. This run has literally just begun.”
Another pseudonymous trader known as the “Byzantine General” said Ethereum’s open interest is still “huge”. He suggested that traders could still anticipate a larger price move. He noticed:
“ETH’s open interest is still absolutely huge. So does that mean … that … we haven’t seen “the” big move yet? “
Total ETH Open Interest Options. Source: Skew.com
Typically, when a cryptocurrency sees a major price movement, open interest decreases. This is because large moves often lead to short and long compressions of the asset which are then followed by a period of consolidation.
For Ether, however, open interest rose to more than $ 1.5 billion, according to Skew data. Huobi and OKEx alone currently have ETH futures contracts worth $ 761 million.
What’s after the maximum of two years
Backed by various factors, including DeFi, institutional adoption, and an overall improvement in market sentiment, Ether has grown 235% year to date. The Cryptowatch team said:
“Ethereum hits a new 2-year high of $ 444. ETH has grown 87% over the past 25 days, nearly 400% since March low and 235% year to date.”
In the medium term, traders expect the altcoin to test higher resistance levels, especially if the Ethereum blockchain continues to see high user activity with sentiment driven by ETH 2.0.
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