ethereum, for the most part, has established a foothold above the $3,500 price level all week as investors keep anticipating to ethereum–eth-breaks-two-year-price-record/” rel=”nofollow”>back to the $4,000 mark. Curiously, ethereum-price-reach-14000/” rel=”nofollow”>the optimism has seen ethereum open interest reaching new highs. Rising open interest, while an indicator of bullish sentiment, can also serve as a bearish signal of an impending change in market trend.
Ultimately, this metric added to the current dynamics of the ethereum ecosystem, including regulatory uncertainty and scalability concerns, which hint at a complicated price trajectory for ethereum price.
ethereum Open Interest Hits New High
bitcoin-open-interest-peaks-at-34-billion/” rel=”nofollow”>Open interest It is an efficient method to track the total number of open positions in a particular contract. Recent market dynamics and interest from institutional investors have seen total open interest in ethereum futures surpass records set in the 2021 bull market phase.
According to data from eth” rel=”nofollow”>glass coinOpen interest in ethereum futures, which has been rising since February 5, recently set a new high of $14.11 billion on March 15. This was not particularly surprising, as a strong buying push by bulls in the previous days saw ethereum price surpass the $4,000 mark for the first time in two years.
However, ethereum has since retreated from the $4,000 price level and is currently trading below $3,600. On the other hand, total open interest in ethereum contracts has remained around its all-time high level, allowing it to surpass $14.10 billion again on March 28. The weighted average open interest also rose to 0.0462%, indicating an increase. in the demand for leveraged long positions in eth.
The majority ($4.55 billion) of the ethereum futures market was recorded on the Binance cryptocurrency exchange. Bybit and OKX came in second and third, with $2.39 billion and $1.94 billion respectively. Interestingly, CME Ether futures also rose to $1.3 billion. At the time of writing, CME Ether futures now sit at $1.31 billion, reiterating bullish commitment among institutional investors.
What's next for eth?
ethereum has been stable since the start of the week and is currently posting a 0.78% gain over the past seven days. all eyes are ethereum-in-the-hot-seat-sec-security-label-looms/” rel=”nofollow”>now in SEC reports Looking to ethereum-not-security-sec-probe-a16z/” rel=”nofollow”>ethereum Security StatusNow, the industry awaits an official ruling similar to the one handed down in the XRP case that will finally bring clarity to the regulatory landscape.
At the same time, investors continue ethereum-etf-issuers-brace-for-sec-march-meeting/” rel=”nofollow”>wait for the SEC's decision about Spot ethereum applications ethereum-spot-etf-mirrors-bitcoins-strength/” rel=”nofollow”>exchange-traded fund (ETF) in the US. According to a senior Bloomberg analyst, the ethereum-spot-etf-expert-predicts-approval-odds/” rel=”nofollow”>The probability of approval is only 25%.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-Open-Interest-Has-Hit-a-New-All-Time-High" alt="Tradingview.com ethereum Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
eth price drops to $3,500 | Source: SHIBUSD on Tradingview.com
Featured image of Money, chart from Tradingview.com
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