Key Points:
- Ethereum futures open interest recently hit an all-time high of $46.58 billion according to Glassnode.
- This happened as its price broke $3,300, forming a bullish golden cross on the daily chart.
- Analysts predict Ethereum could reach between $6,000 and $30,000 this cycle.
Ethereum is once again grabbing headlines in the crypto space. After months of modest price action, the second-largest cryptocurrency by market cap shows strong signs of revival.
This week, Ethereum is trading above $3,300 for the first time since February. This bullish move has drawn the attention of retail traders and institutional investors, largely thanks to its rising future activity.
Ethereum Leads the Market Recovery
Ethereum has outperformed its peers over the past week. According to data from CoinGecko, the cryptocurrency has climbed nearly 10% in the last 24 hours.
It has risen by over 26% in the past seven days. This makes it the best-performing token among the top 20 cryptocurrencies so far.
Much of this rally stems from an increased interest in Ethereum futures. According to insights from Coinglass in a recent update, OI in Ethereum futures contracts has soared to $46.58 Billion.
This marks a 64% rise since late June and shows fresh capital is entering the market despite the new highs.
A Bullish Golden Cross Strengthens the Trend
Technically, Ethereum has just formed a golden cross between the 50-day EMA and the 200-day EMA. Golden crosses are a widely followed signal among traders and have historically indicated the start of a long-term uptrend.
In addition to the golden cross, other indicators are flashing bullish signals. The Relative Strength Index, for example, is currently above 80 in a show of strong momentum. The Average Directional Index (ADX) is at 29, showing the trend is strong and likely to continue.
Ethereum is now comfortably trading above its major moving averages, which lends further credibility to the narrative that the bulls have taken control of the market.
Analysts are watching support levels at $3,000 and $2,500. They also monitor resistance alongside $3,500 and the $3,750 to $4,000 range.
Ethereum Network Activity Ramps Up
Rising prices aren’t the only story here. On-chain data also shows an ongoing surge in Ethereum network activity.
According to Nansen, Ethereum’s daily network fees have doubled over the past week to $12.4 million. This rise in fees shows that the demand for Ethereum-based services and applications is rising.
In addition, Ethereum’s fee-burning mechanism from 2021 means that a considerable portion of the higher fees are being burned. Considering the rising activity and more tokens being destroyed, the upward price pressure is only likely to get stronger.
Five-Digit Price Targets in Sight?
Ethereum’s current rally has also drawn in strong predictions from several analysts. Some believe this breakout is just the beginning of a longer cycle.
Crypto trader DeFi Dad, for example, believes Ethereum could peak between $15,000 and $30,000 in this cycle. Ethereum is looking at a 5-6x return from current levels if this happens.
Other analysts take a more conservative stance. Their predictions range between $6,000 and $10,000 between now and next year. Still, if the ongoing Bitcoin adoption continues, these $6l – $10k predictions are likely on the low end.
Analyst Crypto GEMs added to the bullish case with historical patterns from Ethereum’s 2016–2017 cycle. The analyst believes Ethereum could be looking at a possible 330% rally. They expect a surge from the April low of $1,400 to a high of around $6,000.
If Ethereum starts outperforming Bitcoin, a full-blown altcoin season could be coming. The altcoins are already following Ethereum’s footsteps with popular options like XRP, Solana, Dogecoin, and Cardano.
These have posted impressive gains in the past 24 hours. Many analysts believe Ethereum’s dominance over Bitcoin could be ready to skyrocket, and all eyes are on what the future holds.