- Ethereum has kicked off the altcoin season, paving the way for profits that will soon cost $ 2,000.
- Ethereum’s open open interest suggests that volatility could remain high in the face of fear of the missed (FOMO).
Ethereum celebrated an independent rally on Tuesday that was above its January high of $ 1,350. The flagship smart contract token hit a new record high on some exchanges like Coinbase, switching hands at $ 1,146.
At the time of writing, ETH is pushing for another leg after the retreat to test the middle limit of the ascending channel. The ether hovers around $ 1,390 while the downside is heavily protected. On the flip side, the goal is to get above $ 1,400 and allow the bulls to shift focus to $ 2,000.
The Relative Strength Index suggests that Ethereum is not yet oversold. So there is room for growth and possibly an opportunity to hit another record high. Additionally, the ability of the 50 Simple Moving Average to stay above the longer-term 100 SMA confirms the bulls’ impact on price.
ETH / USD 4-hour chart
Many analysts believe this breakout could signal the start of a mid-season. Meanwhile, Ethereum futures open interest surged to levels never seen before, suggesting that investors are confident of the ongoing rally. Glassnode reveals that open positions have risen to $ 4.5 billion, while open positions have increased to $ 1.1 billion on the largest cryptocurrency exchange, Binance.
Ethereum futures open interest
The surge in open interest suggests that volatility is high and the upward trend may be sustained due to Fear of Missing Forces (FOMO), especially now that Ethereum is looking at $ 2,000 in the short term.
Spot rate: USD 1,397
Relative change: 30
Percentage change: 2.2%
To follow DeFi updates in real time, read our DeFi news feed here.