Ethereum price increase is making history surpassing each high new level set by analysts. At a two-year high of $438, it records an ETH open interest. Cryptowatch - the trading terminal is ETH’s price OK hit yesterday the two years high according to their data the new power level $434 sets a steady open interest for the second popular crypto coin.
ETH-USD 6-months price chart. Source: Coindesk.com
This price growth is a tremendous opportunity for traders to gain massively in the coming days. If the breakout continues for a year or two, Ether’s could generally anticipate a stronger uptrend ahead. According to Skew data, the Ether open interest has extended over $1.5 billion. The shocking event for the ETH open interest is the fact that it remained active and increased after the price improvement. And this is atypical for any cryptocurrency on the crypto market.
Total ETH Options Open Interest. Source: Skew.com
Any cryptocurrency, after a major price movement, gets a drop in the open interest. It happens because large moves often lead to short and long squeezes on the asset, followed by a period of consolidation.
Longs and Shorts ETH interest rate 4-hours chart. Source: datamish.com
The massive open interest in Ethereum stands on two solid interlinked reasons:
1. Ether is mainly purchased mainly to pay fees to miners.
This seemed to be the rally’s catalysator. Though the fees seem to increase constantly, everyone is waiting for a drop off the price. The last months proved that the constant increase is real.
2. Market sentiment improvement.
Market sentiment improvement became a faraway goal to reach after the sudden decrease in the crypto market due to the pandemic. After the increase in the BTC price and the overreach of $8,000 in May, along with various factors, such as DeFi, a significant improvement in market sentiment altcoin such as Ether has surged 235% year-to-date.
ETH sentiment change in the last 24 hours. Source: datamish.com
Seeing the statistics, ETH is up 87% in the last 25-days, nearly 400% since its March low and 235% year-to-date. Traders still anticipate a bigger price movement, calling it ‘THE’ BIG MOVE. Also, they expect the altcoin to test higher resistance levels, following the Ethereum blockchain.
What is your opinion on the current Ethereum open interest?