Ethereum has mostly established a foothold above the $3,500 price level throughout the week as investors continue to anticipate The return to the $4,000 mark. Interestingly, the optimism saw Ethereum open interest rising to new highs. The increase in open interest, while an indicator of bullish sentiment, can also serve as a bearish signal of an impending change in market trend.
Ultimately, this metric contributed to the current dynamics of the Ethereum ecosystem, including regulatory uncertainty and scalability concerns, suggesting a complicated price trajectory for the Ethereum price.
Ethereum Open Interest Hits New High
Open interest is an efficient method for tracking the total number of open positions on a given contract. Recent market dynamics and interest from institutional investors have seen total open interest in Ethereum futures rise above the records set in the 2021 bull market.
According to data from Currency CurrencyOpen interest on Ethereum futures, which has been rising since February 5th, recently set a new high of $14.11 billion on March 15th. This was not particularly surprising as a strong buying momentum by bulls in the previous days saw the price of Ethereum surpassing the $4,000 mark for the first time in two years.
However, Ethereum has since reversed the $4,000 price level and is currently trading below $3,600. On the other hand, total open interest on Ethereum contracts remained around its all-time high, which allowed it to surpass $14.10 billion again on March 28. The weighted average open interest also rose to 0.0462%, indicating an increase in demand for leveraged long positions in ETH.
The majority ($4.55 billion) in the Ethereum futures market was registered on the cryptocurrency exchange Binance. Bybit and OKX came in second and third place with $2.39 billion and $1.94 billion, respectively. Interestingly, CME Ether futures also rose to $1.3 billion. At the time of writing, CME Ether futures are now at $1.31 billion, reiterating the compromised optimism among institutional investors.
What’s next for ETH?
Ethereum has been trading flat since the start of the week and is currently showing a gain of 0.78% over the last seven days. All eyes are now in SEC reports looking inside Ethereum Security Statuss, the industry awaits an official ruling similar to the one handed down in the XRP case that will finally provide clarity to the regulatory landscape.
At the same time, investors continue to wait for SEC decision about Spot Ethereum applications exchange-traded funds (ETFs) in the US According to a senior Bloomberg analyst, the the probability of approval is only 25%.
ETH price drops to $3,500 | Source: SHIBUSD on Tradingview.com
Money Featured Image, Chart from Tradingview.com
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