Multiple fundamental and technical factors validate a potential bullish rally for Ether, the second-largest cryptocurrency by market capitalization. As if to make up for Q1’s underwhelming performance, Ether bulls have been up and working of late, with the price value of $3,000 appearing more attainable in the near term.
Among other factors, the rise in Ethereum’s open interest rate presents a bullish signal for market participants. Notably, Ethereum’s Open Interest—the total number of outstanding (open) contracts yet to be settled—has hit a new all-time high, exceeding $40 billion for the first time.
This new development is especially remarkable for Ethereum, as high open interest typically indicates a rise in market activity and liquidity, suggesting heightened enthusiasm amongst market participants.
Institutional investors and long-term holders emerge as strong market pillars
Institutional players are fired up as ETH ETFs recorded $52.7 million in inflows on June 9, marking 16 days of consistent inflows for Spot-based Ethereum ETFs. From May 26, Ethereum-based ETFs have consistently ushered in $890.1 million in inflows, suggesting that institutional players are actively accumulating ETH.
It is also worth noting that long-term ETH holders are throwing their full weight behind the asset. According to data shared by Glassnode, Ethereum has successfully broken out of a month-long range.
Per the Cost Basis Distribution — a metric that identifies key accumulation and distribution zones, a notable amount of investors leveraged the consolidation period to increase their holdings.
“1.3M ETH [was] held around $2.70K and $2.74K, and 800K ETH at $2.76K. These investors accumulated during consolidation and now will potentially form a strong support zone.” Glassnode wrote, adding that ETH is well on its way to $3,420 if the $2,700 and $2,760 support levels hold up strongly. At report time, ETH trades at $2,525 per coin, with gains from the last 7 days going up to 7%.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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