The aggregate open interest of Ethereum (ETH) reached an all-time high and with it the price of crypto. We tell you what happened!
It seems that the season of the Altcoins becomes official after the bullish run that has begun Ethereum (ETH). In this sense, like Bitcoin, ETH has set a new record both for its market price and for the open interest of its futures.
Ethereum is about to set a new historical high
Ethereum breaks records
It is worth remembering that open interest is the volume of open positions in a futures or options contract at a particular point in time.
In addition, futures are financial derivatives where the parties can buy Bitcoin Compass or sell a specific asset, in this case Ethereum, at a specific price and on a specific date.
Thus, according to Glassnode data, the aggregate open interest in Ethereum options and futures broke records over the weekend.
Lindsey Lohan expects Bitcoin to reach USD 100,000 and Ethereum to reach USD 10,000
ETH leaves the shadows
Specifically, the open interest in ETH futures reached a maximum of USD 4.5 billion. In fact, according to Glassnode data, open interest in Ethereum futures has been growing steadily since early 2021.
In this sense, the increase in open interest can be explained in part by the growth in the price of ETH itself. However, it cannot be denied that the buying interest in Bitcoin has impacted on the crypto market and therefore on Ethereum.
During the past year, Ethereum managed to outperform Bitcoin in terms of ROI; however, crypto did not manage to break its historical high while Bitcoin did. So, it seems that ETH got tired of being in the shadows of crypto and, in the last 24 hours, managed to surpass its previous maximum for a moment.
According to CoinMarketCap, ETH managed to position itself part of yesterday and today above or close to USD 1400. However, it failed to hold on to the position and plummeted to USD 1200 today; a fall of 8% over the last 24 hours.
For the time being the projections for Ethereum appear to be positive and we can see this through the betting on future contracts. Estimates range from USD 3,500 to USD 20,000; one option contract for December 2021 even points to USD 10,000 for ETH.
However, we should note that, the high open interest for Ethereum can also add to the volatility in the market.