Why is Ethereum (ETH) price up today?
Ethereum (ETH) price has shown strong bullish momentum this week, currently showing four back-to-back daily green candles for the first time since early July.
The rally in crypto assets began after the United States announced a 50 basis point rate cut, signaling the start of a global interest rate easing cycle.
Also Read: Ethereum Fractal Hints At $3.3K Analyst Says It's ‘Time To Go' For ETH Price
Ether OI rises by $1.3B.
Ethereum's open interest, or OI, is currently at $11.74 billion after increasing by more than $1 billion in less than a week. Previously, Ether OIA was over $11 billion on August 5, when the price dropped to $2,111.
Ethereum open interest. Source: CoinGlass
The increase in open interest indicates that futures traders are returning to Ether as they look to capitalize on the potential for greater profits. The underlying market plays a major role in the current rally, with funding volume rising sharply over the past four days, hinting at more long bets.
Ethereum Funding Rate, Consolidated Spot Rate Chart. Source: Velo.chart
The derivatives market currently determines price action with aggregate spot volume currently flat.
Ethereum TVL increases by 4 billion dollars in 48 hours
Ethereum's DeFi activity hit a high in Q3, down from $60.5 billion in June to $42 billion. However, the total value of the locks showed a strong recovery, increasing by $4 billion to $48.33 billion in the last 48 hours.
Ethereum TVL chart. Source: DeFi Lama
The price of ETH came out looking at 2.8 thousand dollars
From a technical perspective, independent analyst Kingpin Crypto believes that Ether's long-term market structure looks promising. While ETH's year-to-date returns were briefly flat in 2024, the analyst hinted that it is currently testing a strong demand environment. And so he said.
“ETH weekly looks amazing in terms of price. If the price can go back above $2750 then going all in on Ethereum imo is absolutely a no brainer.
Over the past 24 hours, Ethereum price has breached a bearish trend line and closed above $2,464, marking the completion of a breakout of structure, or BOS. BOS probably indicates a change in bullying trends.
Ethereum 4-hour chart. Source: TradingView
In this case, Ethereum broke the low-high trend, which means that the markets are showing a breakdown setup. After the BOS, Ethereum broke above the 200-day EMA, further confirming its dominance.
Ether's immediate target is now $2,800, but any potential pullback could take ETH to the $2,400 fair value gap, which coincides with the Fibonacci range of 0.50-0.618.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
