ethereum open interest has followed an upward trajectory that has culminated in crossing the $5.2 billion mark. This rise is important for ethereum‘s native token eth in several ways, as it could indicate how investors view the cryptocurrency at the moment.
ethereum Open Interest Sees Rapid Rise
Data from Coinglass shows that ethereum open interest has been increasing rapidly as of late. Over the past week, open interest has grown, eventually surpassing $5.2 billion as the cryptocurrency market continues to struggle to loosen the grip of the bears.
One thing about open interest is that it can indicate how investors view the cryptocurrency and whether they are bearish or bullish. When open interest increases, it indicates that investors are becoming more optimistic. On the other hand, a drop in open interest suggests that investors are more bearish and expect prices to decline.
<img decoding="async" class="alignnone size-medium wp-image-552956 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/09/Ethereum-Open-Interest-Surpasses-52-Billion-Time-to-Buy.png" alt="ethereum Open Interest” width=”460″ height=”146″ srcset=”https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=3060 3060w, https://technicalterrence.com/wp-content/uploads/2023/09/Ethereum-Open-Interest-Surpasses-52-Billion-Time-to-Buy.png 460w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2023/09/Screenshot-2023-09-26-at-15.29.01.png?w=3000 3000w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
eth open interest jumps above $5.2 billion | Source: Coinglass
This time, with open interest rising, it suggests that cryptocurrency investors are turning bullish once again. This mirrors the crypto Fear & Greed Index, which shows that investor sentiment has improved over the same period.
The chart above shows that the price of eth has often risen when open interest has increased, which could happen in this case. If this is true, then eth price could be looking for an increase towards the $1,700 level once again.
eth could rally with the crypto market
The bullish turn marked by the rise in ethereum open interest is not limited to the cryptocurrency alone. Looking at the long/short ratio on Coinglass sample that long volumes have begun to recover while short volumes have plummeted.
ethereum long volumes currently stand at $574 million, compared to short $548 million. This is equivalent to 51.28% for longs and 48.72% for shorts. And while these differences are not particularly significant, they do show that crypto investors are betting more on a recovery of the cryptocurrency.
Liquidations have also shown that short traders are losing more in the market. ethereum currently has a 24-hour settlement volume of $6.63 million. Of them, 1.57 million dollars correspond to long positions, while 5.06 million dollars correspond to short operators.
The price of eth stands at $1,588 at the time of writing. It is seeing small gains of 0.84% on the last day but suffering losses of 3.59% on the weekly chart.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Ethereum-Open-Interest-Surpasses-52-Billion-Time-to-Buy" alt="Tradingview.com ethereum Price Chart (Open Interest)” width=”2884″ height=”1746″ loading=”lazy”/>
eth price remains volatile | Source: ETHUSD on Tradingview.com
