Key Insights
- Ethereum price has reclaimed the $3,800 zone and is closing in on the $4,000 resistance as of writing.
- Open interest for ETH futures hit a record $58 billion, which shows increased market confidence.
- Ethereum’s network activity and new address growth point towards strong demand and possible new highs..
Ethereum price is once again the center of investor attention. This happens as the cryptocurrency climbs toward the psychologically significant $4,000 mark.
After rebounding from $3,700 to over $3,800, analysts believe ETH could be “ready to explode.” That could be seen if it breaks through this resistance.
Bullish Traction Builds Behind Ethereum Price
Ethereum price has remained strong lately. The cryptocurrency is trading around $3,872, up 6% over the past week. This level is a 7-month high and is supported by rising demand amid strength in the general market.
The top resistance now lies just ahead at $4,000. It is a level that has rejected ETH multiple times since February of last year. This said, breaking above could open the door to a fresh rally and take Ethereum to $4,425.
Ethereum Price Surge Sparks Record Futures Open Interest
One of the strongest signs of bullish sentiment is the surge in open interest for Ether futures. According to data from Coinglass, aggregate open interest has doubled since late June to a record $58 billion.
In April of the previous year, when the Ethereum price traded near $1,800, OI stood at just $20.75 billion. Even during the December rally when ETH approached $4,000, futures open interest was only $31.5 billion.
This increase shows that much new money flows into leveraged ETH positions. Crypto analyst Merlijn The Trader noted, “Open Interest just hit a new all-time high. The price is climbing. Leverage is stacking. This isn’t a normal breakout, it’s fuel for a vertical move.”
Ethereum Network Activity “Through the Roof”
It’s not just futures data showing strength. On-chain activity has also surged lately. According to Nansen, the number of active addresses on ETH has increased 7.2% over the last 30 days. On the other hand, monthly transactions climbed by 16% to over 43 million.
DEX volume on Ethereum hit a four-month high of $22.6 billion last week. Also, the app revenue soared to a six-month high of $89.8 million. At the same time, stablecoin supply on Ethereum reached an all-time high of $132.5 billion. This added more liquidity to the ecosystem.
“Elja,” a popular crypto analyst, commented on X: “Ethereum network activity is going through the roof. This means the new ATH of Ethereum price might be just a matter of time.”
Speculative Focus from Bitcoin to ETH
Glassnode data further confirms that capital is rotating from Bitcoin to Ethereum. ETH open interest dominance now sits at 40%, its highest over two years. Historically, such a change in market sentiment means that traders favor ETH over BTC regarding bets.
“This marks a clear change in speculative focus,” said analysts at Glassnode. “Only 5% of days have seen a higher ETH dominance in futures.”
Overall, while the setup for a breakout looks strong, some market analysts are warning of a market top. It is worth noting that over 94% of Ethereum’s supply is currently in profit.
Historically, when this number crosses 95%, it tends to lead to a price correction, as investors start to lock in gains.
This said, the situation is delicate. If the Ethereum price fails to break $4,000 soon, it could fall to $3,530. It might go even as low as $3,131 according to analysts from Bitcoinsensus. This would erase much of the recent gains and could mark the end of the current rally.
As Daan Crypto Trades noted, “It would be healthier for ETH to consolidate below $4,000 first. That gives more room for a larger leg up afterward.”