Ether (ETH), the cryptocurrency of the Ethereum network, is experiencing a notable rebound that allowed it to return to trading at $3,800, its highest price in 5 months.
The quote of the second most valuable cryptocurrency on the market increased more than 6% during the last week and now it sets its sights on breaking the $4,000 zone.
At the time of publication of this note, the price of ETH is $3,820, 21% below its all-time high (ATH).
This price rebound also allowed the price of ETH to measure in bitcoin recover after reaching its lowest level since 2021as seen in the TradingView chart below.
The good news for the Ethereum network community does not end there. In addition to the rebound in its price, the open interest (OI) of ETH set a record by exceeding $25 billion for the first time in its history.
OI is a valuable metric for investors because it provides information on market sentiment, trading activity, and liquidity. In addition, it reflects the number of market operations that are currently in circulation.
This indicator rises when the number of new contracts, in long positions (bets on a price increase) or short positions (bets on a fall), exceeds the number of closed contracts. A growth in OI is a sign of greater market sharewhich may result in an increase in liquidity and trading volume.
Therefore, every time the OI goes up, sparks bullish sentiment among investors.
According to data from explorer Coinglass, the Binance exchange has the majority of open interest in ETH contracts with 31.58%. Further back, Bybit appears (20.21%) and then CME appears (11.06%).
Finally, we must highlight the good performance that ETH-based investment products are having.
As NoticiasVE already reported, these financial instruments are regulated by state entities and, for that reason, they are attractive to institutional and corporate investors. During the past week, ETH-based investment funds worldwide had revenues of $634 million. So far in 2024 they accumulate 2.2 billion dollars.
This flow of capital was led by ETH exchange-traded funds (ETFs) in the United States, which between November 24 and 29, reported inflows of more than $466 million.