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Highlights
- The Ethereum open interest remains close to $15 billion hinting bullish action ahead.
- If the ETH price sustains above the support of $3,400 it can kickstart a rally to $4,000 and above.
- Spot Ethereum ETF uncertainty has clouded the ETH price in near term.
The world’s second-largest cryptocurrency Ethereum (ETH) has been facing selling pressure off-lately with its price heading downwards. The Ethereum price failed to sustain above $3,700 as bears took charge of the matter resulting in a partial pullback. However, the renewed interest in Ethereum futures as compared to Bitcoin indicates points to a rise in prices soon.
Ethereum Futures Open Interest
As per data from CoinGlass, the Ethereum futures open interest has surged to $15 billion suggesting that investors are bullish about Ethereum from here onwards. Similarly, there’s a surge in long positions observed in CME Ethereum futures.
The funding rates metric, together with Open Interest, acts as an indicator of the level of assertiveness among buyers and sellers when placing orders. Generally, positive values in these metrics indicate a bullish sentiment and increased engagement within the perpetual market.
Taking these metrics into account, the market seems primed for another substantial shift in the medium term, with the possibility of long positions being reintroduced in the perpetual market. This hints at a positive outlook for Ethereum’s price trajectory, potentially propelling it towards its all-time high.
ETH Price Action Ahead
In addition to the futures market, Ethereum’s spot market indicators signal a surge in bullish sentiment. The MACD (Moving Average Convergence Divergence) line has recently surpassed the signal line, marking the first occurrence since March 15th and indicating a strengthening bullish momentum.
Further reinforcing this sentiment is Ethereum’s price action, which shows resilience above the $3,400 level. Should bullish activity persist, ETH could potentially target levels of $4,500 or even $5,000 in the upcoming weeks. Nevertheless, immediate resistance is anticipated near the $3,800 mark, and a decisive breakthrough above $4,080 could pave the way for additional upward movement.
Jan Van Eck, CEO of VanEck, and Jean-Marie Mognetti, CEO of CoinShares, have voiced skepticism regarding the U.S. Securities and Exchange Commission (SEC) approving a spot Ethereum ETF by the conclusion of 2024.
Contrarily, JPMorgan strategists led by Nikolaos Panigirtzoglou are optimistic that the SEC will approve spot ETH ETFs in due course, although not necessarily as early as May.
ETH price fell below $3500 after the US CPI release, but still holds above the $3,400 level. The price is down 5% in the last 24 hours, with a 24-hour low and high of $3,410 and $3,638, respectively.
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