Back to top
  • 공유 Share
  • 인쇄 Print
  • 글자크기 Font size
URL copied.

Ethereum Eyes $4,000 as Futures Open Interest Hits Record High

Sat, 18 Jan 2025, 07:07 am UTC

Ethereum Eyes $4,000 as Futures Open Interest Hits Record High

Ethereum (ETH) futures open interest has surged to an all-time high of 9 million ETH as of January 17, fueled by strong institutional demand and rising bullish sentiment, raising the possibility of Ethereum testing $4,000 in the near future.

According to CoinTelegraph on January 18, ETH futures open interest increased by 10% over the past two weeks, reaching unprecedented levels. This growth persisted even after Ethereum retested the $3,000 support level on January 13, reflecting sustained interest in leveraged positions. However, traders remain divided on whether this signals a bullish trend or heightened market volatility.

Market Dynamics and Institutional Activity

Data from CoinGlass shows that Binance, Bybit, and Gate.io collectively account for 54% of the Ethereum futures market, while the Chicago Mercantile Exchange (CME) holds 10% with $3.2 billion in open interest. This reflects Ethereum’s relatively lower institutional adoption compared to Bitcoin, where CME commands 28% of the futures market.

The rise in open interest alone does not indicate bullish momentum, as every futures contract matches a long position with a short position. To gauge sentiment, traders analyze metrics such as futures premiums. As of January 17, the annualized premium for monthly ETH futures stood at 12%, up from 10% on January 12, signaling improved optimism.

Options and Perpetual Futures Insights

Bullish signals are also evident in Ethereum’s options market. The 25% delta skew—a measure of demand for calls versus puts—was recorded at -4% on January 17, indicating slightly higher demand for call options within a neutral range. Similarly, perpetual futures funding rates for ETH averaged 0.9% monthly, remaining within the neutral 0.5–1.9% range, suggesting balanced market sentiment.

Macro and External Factors

Macroeconomic conditions have bolstered Ethereum’s outlook. Lower-than-expected inflation data released in December 2024 has raised expectations of Federal Reserve rate cuts, fueling optimism across financial markets. Additionally, Ethereum’s potential involvement in World Liberty Financial, a crypto project associated with President-elect Donald Trump, has contributed to the positive sentiment.

Outlook for Ethereum

Despite an 11% decline over the past 30 days, Ethereum’s strong institutional participation and improving trader sentiment point to a potential test of $4,000 in the coming weeks. With both macroeconomic tailwinds and growing confidence among market participants, Ethereum appears poised for further upward momentum.

<Copyright ⓒ TokenPost, unauthorized reproduction and redistribution prohibited>

Most Popular

Comment 0

Comment tips

Great article. Requesting a follow-up. Excellent analysis.

0/1000

Comment tips

Great article. Requesting a follow-up. Excellent analysis.
1