Open interest in Ethereum futures has reached an all-time high

Open interest in Ethereum (ETH) and Bitcoin (BTC) futures is increasing as the crypto market tests new all-time highs.

Open interest in Ethereum Futures hits new high

Data from Skew shows that aggregate open interest in ETH futures reached $ 12.6 billion globally on Wednesday, breaking the previous record of $ 11.1 billion on September 6, 2021.

In contrast, total open interest in Bitcoin futures currently stands at $ 26.4 billion, approaching its previous high of $ 27.4 billion, a figure that was last seen. April 14, 2021.

Open interest in a futures market refers to the total value of unsettled commercial contracts. Rising open interest serves as a bullish indicator and suggests that new money is entering the market.

The peaking open interest metric indicates that Ethereum and Bitcoin may maintain their existing price action, with the potential for larger moves in the near future.

Recently, one of the biggest investment banks, Goldman Sachs, predicted that Ethereum could reach $ 8,000 in the next two months. Meanwhile, JP Morgan made a similar projection on Bitcoin exceeding $ 73,000 in the near term.

Ethereum and Bitcoin prices are on the rise

Outside of the futures market, Bitcoin and Ethereum themselves have tested new highs and entered a price discovery mode.

Various factors may be at play. The London hard fork of Ethereum, which was activated in August, catalyzed price growth by changing the mechanics of Ethereum’s fees. For three months now, the update has created deflationary force for the second largest crypto.

In addition, Ethereum has maintained its lead in the market. It remains the dominant settlement layer for non-fungible tokens (NFTs). The network also hosts the majority of the value locked in DeFi although other competitors like Solana have shown signs of growth.

The price of Ethereum itself has increased by around 60% since October 1. ETH, which is trading at around $ 4,800, will soon test the $ 5,000 level which should be the psychological resistance point.

Bitcoin, meanwhile, is currently trading at an all time high of $ 68,500. In recent months, its bullish sentiment has been fueled by the launch of Proshares and Valkyrie Bitcoin futures ETFs.

Bitcoin also has an upgrade called “Taproot” coming on November 15, and anticipation around this improvement may have pushed the price of BTC up over the past few days.

Disclosure: At the time of writing, the author of this feature owned ETH and other cryptocurrencies.