Ethereum Open Interest Hits $40B – Is ETH Price Primed for a Breakout?

Ethereum''s derivatives market just flashed its biggest bullish signal in years. With open interest surging toward $40 billion, traders are placing massive bets on ETH''s next move.

The leverage pile-up

Futures markets show speculators going all-in – but this isn''t 2021''s reckless gambling. Institutional players now dominate these positions, suggesting smarter money sees value at current levels.

Price action lagging behind

While open interest screams confidence, ETH''s spot price remains stubbornly range-bound. Either this is the calm before the storm, or another case of ''Wall Street''s geniuses'' overestimating their crypto timing (again).

All eyes on the $40B milestone

The last time open interest approached these levels, Ethereum was carving out its last bull market top. This time? The infrastructure''s better, the use cases clearer – and the whales hungrier.

The increasing price and open interest usually indicates weak confidence among short traders, resulting in a surge in long positions. Let us now understand the technical sentiment and possible Ethereum price prediction for the week!

The Exponential Moving Averages (EMAs) helps determine the strength of the trend at various durations (20, 50, 100, and 200). In the ethereum price chart, all 4 EMAs stand below the price mark, indicating a strong bullish price action for the largest altcoin in the crypto market. Notably, these EMAs, in combination, act as major support for ETH currently, allowing investors to make a more accurate decision.

The Stochastic Relative Strength Index (RSI) shows the position reversal just above the oversold range in the daily time frame. This highlights a potential trend reversal for the Ethereum price in the market. Considering the present chart conditions, the price of ETH could continue gaining momentum this week.

How High Will ETH Price Rise?

Maintaining the value above the $2,600 mark could result in this altcoin retesting its upper resistance level of $2,800. A sustained bullish action may push the price toward its upper price target of $3,000 or $3,200 in the upcoming time.

Conversely, increased liquidation may pullback the price toward its immediate support level of $2,600. Whilst, a surge in negative sentiment could result in it plunging toward its lower support zone of $2,400 this month.