Ethereum Price Breakout – Open Interest Spike Points to $3,000 Target
Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...
The Ethereum price has struggled to make headway today, remaining at $2,644 as the market drops by 4% in 24 hours.
ETH is now up by a very healthy 15% in the past week, with a 4% loss in a month and 66% increase in the past year.
It’s likely that the next few weeks and months will bring further increases for the alt, with Coinglass data showing open interest in long Ethereum positions has increased substantially in recent days.
Investors seem to be betting that ETH will begin to test higher levels, with $3,000 being the next significant target on its horizon.
What’s bullish about ETH’s chart right now is that its support (green) and resistance (red) levels indicate how it has been trading within a steadily climbing range.
And what we have seen this morning is the Ethereum price jump from its current support level, where it may begin a push towards its current resistance.
We’ve also seen ETH’s relative strength index (purple) rise from 40 this morning to just over 50, another sign of improving momentum.
It’s clear that a majority of traders believe that Ethereum’s general trend at the moment remains upward, with its average funding rate rising to 0.0076% today.
A positive funding rate means that more traders are going long on Ethereum than shorting it, as we saw in early August.
And in turn, this implies an expectation of a rising price, with $3,000 being the next big target for ETH.
It may take some time to reach this benchmark, however, given that Ethereum witnessed a net outflow last week among institutional investors.
Of course, the
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