Bullish sentiment is noticeably returning to the crypto market once again, and Ethereum has made a remarkable upward move. With the fresh wave of optimism, ETH’s price has reclaimed the key $2,700 mark, which has captured investors’ attention. While prices have strongly increased, recent reports reveal that ETH’s open interest also witnessed a notable uptick.
Traders Are Doubling Down On Ethereum
Ethereum’s price appears to have regained upside traction, and its derivatives market is heating up. This notable uptick in the derivatives market is attributed to a recent surge in ETH’s Futures Open Interest (OI) to new multi-month highs.
Glassnode, a popular on-chain analytics and financial platform, in a post on X highlighted that Ethereum CME Futures open interest has increased to $3.27 billion. ETH CME futures open interest’s rise to this figure marks its highest level since February 2 this year.
This notable expansion in futures is a clear indication that investors and traders are ramping up their bets on the world’s second-largest cryptocurrency. It also demonstrates a renewed capacity for speculation and an increasing level of assurance on ETH’s short-term prospects.
According to the on-chain platform, this indicates a definite improvement in institutional standing, as price and demand are increasing simultaneously. As ETH’s price action levels off following recent volatility, increasing open interest implies that market players are setting themselves up for potentially big moves in the future. Such a positive advancement could further bolster the general attitude toward Ethereum and its future performance.
A Persistent Decrease In ETH Exchange Reserve
While ETH bullish momentum builds, it is being met with robust confidence from investors from all crypto exchanges, solidifying the current upward trend. BlackMen, a market expert, has reported a positive action among ETH investors on crypto exchanges.
After examining the Ethereum Exchange Reserves metric, the expert stated that the amount of ETH in exchanges is rapidly decreasing. Such a decline in exchange reserves highlights the increasing inclination of investors to move their ETH to decentralized platforms or long-term safekeeping.
Investors are also locking their Ethereum in staking, which keeps it in the system, and this rate is getting close to all-time highs. This pattern is often classified as a bullish indication, indicating that holders are less likely to sell and more optimistic about ETH’s prospects.
BlackMen stated that these developments are typically the precursor to bull runs that begin quietly, not hype or coincidence, noting that a slight hype could occur after August. The expert’s claims may imply that the ongoing bull market cycle still has room to extend.
At the time of writing, Ethereum was trading at $2,812, reflecting a nearly 7% increase in the last 24 hours. Ethereum is witnessing renewed bullish sentiment from investors and traders following the recent rally above the $2,800 price mark. Data from CoinMarketCap shows that ETH’s trading volume has risen by more than 64% in the past day, suggesting growing conviction in the newfound rally.
Featured image from iStock, chart from Tradingview.com
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