Originally published on: September 20, 2024
Ethereum’s price is on the rise, displaying an impressive bullish momentum with four consecutive days of gains – a feat not seen since early July.
The recent rally in cryptocurrencies was sparked by the US announcing a 50 basis point rate cut, signaling the beginning of a global interest rate easing cycle.
Ethereum’s open interest has also seen a significant boost, currently standing at $11.74 billion, up more than $1 billion in less than a week. This surge in open interest suggests that futures traders are returning to Ether in hopes of capitalizing on potential gains.
The derivatives market is playing a key role in driving the current rally, with funding rates increasing rapidly over the past four days, indicating a growing number of long bets. This market trend is dictating price action, while aggregated spot volumes remain relatively flat.
Despite a drop in Ethereum DeFi activity in Q3, the total value locked has shown a strong recovery, increasing by almost $4 billion in the past 48 hours.
From a technical standpoint, independent analyst Kingpin Crypto sees promise in Ether’s long-term market structure. The breach of a descending resistance trendline and a close above $2,464 indicate a bullish trend shift, with an immediate target of $2,800.
However, any potential pullback may see Ethereum retesting the $2,400 level before resuming its upward trajectory. It’s important to note that all investment decisions come with risks, and readers should conduct their own research before making any financial moves.
