Ethereum (ETH) has reached a new all-time high (ATH), albeit not in price. The open interest (OI), which represents the total number of open contracts for the asset, has surged by 30% in just three days, reaching a record high of $11 billion. This increase in OI is largely attributed to the potential approval of an Ethereum Exchange Traded Fund (ETF), as more investors are seeking quick profits.
Furthermore, positive funding rates have added to the bullish sentiment. With long positions now paying interest to short contract holders, traders are more inclined to bet on the growth of Ethereum rather than its decline.
Technical analysis also supports a bullish outlook, with the price of Ethereum rallying and breaking key moving averages such as the 50, 100, and 200-day averages. Volume has also spiked, indicating increased trading activity and market reaction to the price jump.
While Ethereum may continue to climb higher, it is important to hedge against unexpected market downturns that can always occur.