Ethereum’s (ETH) price has exhibited strong bullish momentum this week, currently displaying four back-to-back daily green candles for the first time since early July.
The rally for crypto assets began after the United States announced a 50 basis point rate cut, signaling the beginning of a global interest rate easing cycle.
Also read: Ethereum fractal hints at $3.3K as analyst says its \'go time\' for ETH price
Ether OI rises by $1.3B
Ethereum’s open interest, or OI, is currently $11.74 billion after increasing by more than $1 billion in less than a week. Previously, Ether OI was above $11 billion on Aug. 5, when prices dropped down to $2,111.
Ethereum Open Interest. Source: CoinGlass
A rise in open interest indicates that futures traders were returning to Ether while looking to capitalize on its potential for more gains. The derivatives market plays a major role in the current rally, with funding rates increasing rapidly over the past four days, hinting at more long bets.
Ethereum funding rate, aggregated spot volume chart. Source: Velo.chart
The derivatives market currently dictates price action with aggregated spot volumes currently flat at the moment.
Ethereum TVL rises by $4B in 48 hours
Ethereum’s DeFi activity took a hit in Q3, dropping to $42 billion from a high of $60.5 billion in June. However, the total value locked exhibited a strong recovery, increasing by almost $4 billion to $48.33 billion over the past 48 hours.
Ethereum TVL chart. Source: DeFi llama
ETH price breaks out eyeing $2.8K
From a technical perspective, Kingpin Crypto, an independent analyst, believes that Ether’s long-term market structure looks promising. While ETH’s year-to-date returns briefly became flat in 2024, the analyst hints that it is currently testing a strong area of demand. He said,
“ETH Weekly looks incredible, in terms of price clearly being in an area of demand. If the price can get back above $2750, it is an absolute no-brainer to go all in into Ethereum imo.”
Over the past 24 hours, Ethereum’s price has breached a descending resistance trendline and closed a position above $2,464, which completes a break of structure, or BOS. A BOS indicates a likely bullish trend shift.
Ethereum 4-hour chart. Source: TradingView
In this case, Ethereum has breached a lower-high trend, which means the markets are exhibiting a bullish setup. After BOS, Ethereum also broke above the 200-day EMA, which further validates the upside trend.
Ether’s immediate target is now $2,800, but any potential pullback might take ETH to the fair value gap at $2,400, which coincides with the Fibonacci range of 0.50-0.618.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.