- Ethereum has jumpstarted the altcoin season, paving way for gains eyeing $2,000 soon.
- Ethereum open high open interest suggests that volatility could remain high amid the fear of missing out (FOMO).
Ethereum embraced an independent rally on Tuesday rising above the former January’s high at $1,350. The flagship smart contract token spiked to a new record high on some exchanges such as Coinbase to exchange hands at $1,146.
At the time of writing, ETH is pushing for another leg up after retreating to test the ascending channel’s middle boundary. Ether is doddering at $1,390 while the downside is strongly protected. On the upside, the goal is to rise above $1,400 and to allow bulls to shift the focus to $2,000.
The Relative Strength Index suggests that Ethereum is not oversold yet. Thus, there is room for growth, and perhaps an opportunity to rise to another record high. Moreover, the 50 Simple Moving Average’s ability to stay above the longer-term 100 SMA validates the bulls’ influence over the price.
ETH/USD 4-hour chart
Many analysts believe that this breakout could signal the beginning of an altseason. Meanwhile, the Ethereum futures’ open interest rose to levels never seen before, suggesting that investors are confident in the ongoing rally. Glassnode shows that the open interest shot up to $4.5 billion while posting $1.1 billion in open positions on the largest cryptocurrency exchange, Binance.
Ethereum futures open interest
The surge in open interest suggests that volatility is high and the uptrend may be sustainable due to forces from the fear of missing out (FOMO), especially now that Ethereum eyes $2,000 in the short term.
Spot rate: $1,397
Relative change: 30
Percentage change: 2.2%