Ethereum Price Reinstates Bid For $3k As Options Open Interest Surges To $6.7B
Investors have spent the last few days buying the dip as Ethereum price corrected from highs around $2,130. Over the last 30 days, the largest smart contracts token has increased in value by 24% to trade at $2,030 on Monday during US business hours.
This is in addition to another 72% increase in Ether’s market value in 12 months, data by CoinGecko shows.
What Could Stability Above $2k Mean For Ethereum Price
Bulls reaffirmed their commitment to the ongoing recovery with Ethereum rising to trade above the pivotal $2,000. The pullback to $1,900 allowed sidelined investors to buy ETH.
More buyers continue to join the trend as the tailwind intensifies. However, it is becoming apparent that keeping Ethereum price buoyant above $2,000 would be in the best interest of the bulls, especially with the climb to $3,000 beckoning.
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While the Relative Strength Index (RSI) might have encouraged traders to close their positions and lock in the gains. There’s a high probability the same traders are buying the dip. For now, keenly following the RSI reveals an improving bullish outlook.
The chances of Ethereum price successfully clearing resistance at $2,130 are soaring backed by the upward trending On-Balance Volume (OBV) indicator. This technical indicator monitors the amount of inflows and outflows in the market.
A persistent increase in the inflow volume shows that investor risk appetite is growing. In other words, investors are willing to bet on Ethereum increasing in value rather than falling significantly below $2,000.
Other bullish signals to consider range from the two golden cross patterns on the daily chart formed when the 50-day Exponential Moving Average (EMA) flipped above the 100-day EMA and the 200-day EMA to the upcoming Ethereum Cancun upgrade.
Ethereum Open Interest Expands To $6.7B
Ethereum futures market open interest (OI) continues to grow amid expectations of the token rallying toward $3,000. According to data by Coinglass, the Ether OI holds at $6.7 billion to $5.18 billion in early October and $5.69 billion at the beginning of October.
A growing OI is often considered bullish. It affirms the bullish expectations investors have in the uptrend. Therefore, with Ethereum price buoyant above $2,000, the rebound to $3,000 could materialize sooner than many anticipate.
The decentralized finance (DeFi) market validates the bullish thesis investors associate with Ethereum, with the total value locked (TVL) increasing to $25.6 billion from $21 billion just before the breakout in early October, data by Defi Llama shows.
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