Solana Price Structure Suggests Temporary Recovery Before Next Major Decision
Solana's price structure hints at a possible temporary recovery before a major market decision.
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Ether open interest sees 26% increase as markets rally: Are traders into ETH again?
TL;DR
Ether's price has risen above $2,300, with futures open interest increasing by 26% to $25.4 billion. Despite this rally, traders remain skeptical due to low DApp revenue and negative funding rates.
Key points
- Institutional ETH accumulation remains robust
- Ether price sustained above $2,300
- ETH futures open interest reached $25.4 billion
- Traders are skeptical of the rally
- Negative ETH funding rates observed
Key takeaways:
- Institutional ETH accumulation remains robust as Ether ETFs and Bitmine Immersion lead a healthy, spot-driven recovery.
- Lackluster DApp revenue and negative ETH funding rates suggest that traders are skeptical of the rally.
Ether (ETH) price managed to sustain above $2,300 on Wednesday, distancing itself from the $1,940 lows seen on March 29. The recent rally has caused ETH futures open interest to reach $25.4 billion, indicating increased demand for leveraged positions.The movement suggests a potential turn in momentum for ETH bulls after 10 weeks of failed attempts to reclaim the $2,400 level.
ETH futures aggregate open interest, USD. Source: CoinGlass
To determine whether the shift in positioning is driven by bulls, one must assess the ETH futures funding rate. The ETH perpetual futures funding rate has failed to hold above 5% since Friday, indicating a lack of confidence among bulls.
ETH perpetual futures annualized funding rate. Source: Laevitas
The metric has dipped below 0% multiple times, indicating excess demand for bearish leveraged positions. Under neutral conditions, the indicator should range between 5% and 10% to compensate for the cost of capital.
Still, one could argue that such data reinforces that Ether’s recent rally to $2,350 has been sustained by spot demand.
ETH spot ETF daily net flows, USD. Source: SoSoValue
US-listed Ether spot exchange-traded funds (ETFs) accumulated $248 million in net inflows over the past 10 days, validating the thesis of healthy spot-driven Ether bullish momentum. In parallel, the digital asset treasury company Bitmine Immersion (BMNR US) announced the acquisition of . Bitmine now holds 4.87 million ETH, equivalent to $11.46 billion.
Q&A
What caused the 26% increase in Ether open interest?
The increase in Ether open interest is attributed to a rally in the markets, driven by institutional ETH accumulation and the introduction of Ether ETFs.
What is the current price of Ether and how does it compare to previous lows?
Ether's price is currently above $2,300, significantly higher than the lows of $1,940 seen on March 29.
Why are traders skeptical about the recent ETH price rally?
Traders are skeptical due to lackluster DApp revenue and negative ETH funding rates, which suggest caution despite the price increase.
What does the increase in ETH futures open interest indicate?
The increase in ETH futures open interest indicates a growing demand for leveraged positions, suggesting a potential shift in momentum for ETH bulls.
