Ethereum

bullish

Rise

<p>Ethereum (ETH) is buzzing. With a significant increase in open interest and positive price movements, the second-largest crypto by market capitalization is generating renewed excitement. What are the drivers behind this momentum? Let’s examine the key factors driving this surge of interest.</p>
<h2 id="h-a-soaring-rise">A Soaring Rise</h2>
<p>The open interest for Ethereum recently crossed the $11 billion mark, a surge that indicates a renewed activity in derivative markets.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>This indicator, which measures the total number of outstanding derivative contracts yet to be settled, is crucial for understanding the state of the market. After <a href="https://www.cointribune.com/en/crypto-ethereum-loses-7-heres-why/" target="_blank" rel="noopener noreferrer nofollow">a notable decline</a> in early July, dropping from $12 billion to around $9 billion, the open interest has bounced back, climbing over $1.5 billion in a few weeks.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://bitvavo.com/fr/affiliate/coinmedia?a=_cta" target="_blank" rel="noopener noreferrer nofollow">€20 bonus for registering on Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<p>This resurgence is often a sign of renewed confidence among crypto traders. Indeed, an increase in open interest can indicate that new capital is flowing into the market, a sign of bullish sentiment.</p>
<p>Anticipations around the approval of Ethereum ETFs and other major developments can also play a crucial role.</p>
<p>This influx of fresh money could herald a growth period for ETH, especially if the fundamental news continues to be favorable.</p>
<h2 id="h-a-record-funding-rate">A Record Funding Rate</h2>
<p>Alongside the increase in open interest, the funding rate for Ethereum futures contracts has reached unprecedented heights.</p>
<p>In fact, according to data from <a href="https://www.coinglass.com/" target="_blank" rel="noopener noreferrer nofollow">Coinglass</a>, this rate climbed to around 0.0126%, the highest level since early August.</p>
<p>The funding rate is a measure of the costs paid by traders to maintain long or short positions on futures contracts.</p>
<p>A high funding rate suggests that traders are willing to pay a premium to maintain their long positions, indicating strong demand to hold ETH contracts.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<p>This phenomenon is generally interpreted as a bullish sign. It reflects positive anticipation of future ETH prices, with traders expecting an appreciation in the crypto’s value. This market dynamic is supported by optimistic sentiment, reinforced by recent developments and expectations around ETH.</p>
<h2 id="h-rising-eth-price">Rising ETH Price</h2>
<p>Alongside these positive indicators, the price of Ethereum has seen a notable increase, rising more than 3% within 24 hours.</p>
<p>This increase propelled ETH to around $3,375, a level that marks a break from the previous bearish trend.</p>
<p>Technical analysis shows a Relative Strength Index (RSI) above the neutral line. Indeed, this suggests a bullish momentum.</p>
<p>This price progression is partially attributable to improved fundamentals and a more favorable market environment.</p>
<p>Investors, encouraged by the growing interest in futures contracts and general optimism, see ETH as a growth opportunity.</p>
<p>The market also seems to be reacting positively to potential news on the approval of <a href="https://www.cointribune.com/en/crypto-ethereum-etfs-in-free-fall-heres-why/" target="_blank" rel="noopener noreferrer nofollow">Ethereum ETFs</a>, a potential catalyst for broader adoption and price increase.</p>

Crypto: Interest in Ethereum Is Surging, Here’s Why!

Innehållsförteckning

Cointribune EN

Andra artiklar publicerade 31 juli 2024

ONDO Price Gears Up for $1.5 Rally as On-Chain Recovery Gains Steam

Bitcoin Stuck In Another Sideways Range: Where Do We Go From Here?

Coinbase Demands SEC Release Gary Gensler’s Private Emails in New Court Motion

XRP Rallied 60,000% Last Time This Happened, Here's How Many SHIB U.S. Government Holds, Ethereum...

SEC’s Latest Filing Could Alter the Legal Status of Solana

Konsolidasi Harga BONK: Apakah Penembusan Akan Terjadi?

Prenumerera på vårt nyhetsbrev och få kryptouppdateringar varje dag!