The open interest for Ethereum (ETH) futures contracts has surged to an unprecedented $7.85 billion, marking its highest level since April 2023.
This record surpasses Bitcoin and indicates growing trader conviction potentially favoring ETH over other cryptocurrencies. The heightened futures market activity signals increased leverage usage and suggests traders are positioning for potential significant price movement.
Adding to the bullish sentiment, Ethereum’s price recently breached key resistance levels to trade around $3,743. Analysts point to the $4,500 level, identified by Glassnode’s Active Realized Price metric (+1σ level), as the next critical target price.
Should Ethereum overcome resistance at $4,500, the path would potentially open towards reclaiming its all-time high of $4,891, last achieved in November 2021.
The combined factors of record open interest and futures market positioning suggest imminent heightened volatility and potential sharp price swings for the Ethereum market in the near term.