Ethereum Maintains its Support at $1,500
Recently, Ethereum has been attempting to sustain its price in the $1,500 region. In fact, it has been holding onto this range for the past few days, and there are indications that more traders are becoming optimistic about this asset. Data from Glassnode reveals that Open Interest in Perpetual Futures Contracts recently hit a two-year high.
Open Interest Surges Above 1 Billion ETH
Open Interest in Ethereum Futures has recently achieved an all-time high, according to Glassnode’s latest statistics. On January 7th, the volume exceeded 1 billion ETH, and at present, it stands at its highest level in the last two years. “Open Interest” refers to the total number of open contracts that have not yet been settled or closed in the context of futures contracts. Unlike ordinary futures contracts with a termination date, contracts for perpetual futures can be held indefinitely.
Understanding Open Interest
An Open Interest analysis can provide insight into futures market activity, liquidity, and trader sentiment. It measures the number of active contracts in the market at a given time. If Open Interest increases, it can indicate a bullish attitude among traders, as well as market activity and liquidity. On the other hand, a low Open Interest may suggest a lack of investor confidence and sluggish market activity.
Ethereum Volume on the Rise
Santiment’s volume measure also shows that Ethereum is experiencing a resurgence in terms of volume. Although the volume is modest compared to other months, it has been trending upward and reached over eight billion as of this writing.
Price Movement in Line with OBV and RSI
As of writing, the daily timeframe price of ETH is in the $1,670 area, with support established between $1,568 and $1,520. The price has bounced off the support level twice, indicating stability. An On Balance Volume (OBV) analysis shows that the price move and OBV have converged, suggesting that the recent price increase of ETH is a legitimate rise rather than a temporary pump. Additionally, both metrics and the Relative Strength Index (RSI) have converged.
Ethereum Enjoys a Successful Run
The positive movements in volume, price change, and Open Interest in Perpetual Futures indicate that Ethereum is currently experiencing success. This is certainly encouraging for ETH owners, although there may still be opportunities for better entry points.