Ethereum OI Soars 10% on $3.18B Inflows, ETH Breaks 2021 High
Ethereum’s derivatives open interest (OI) surged nearly 10% after $3.18 billion of new positions flooded in within 24 hours, coinciding with ETH’s breakout above its 2021 all-time high of $4,860. The rally, powered by a 14% single-day jump on Friday following Fed Chair Jerome Powell’s Jackson Hole remarks hinting at potential policy easing, pushed ETH past key resistance at ~$4,800. Taker buy volume also hit a multi-month high of $5.76 billion hourly, underscoring aggressive buying. Technical analysis shows bulls defended the 100-SMA (~$4,298) before driving price higher, with the 50-SMA turning up and the 200-SMA at ~$3,994. If momentum holds, ETH may target the $5,000 psychological level; a rejection at $4,860 could prompt a retest of the $4,400–$4,500 support zone. Strong liquidity inflows and OI expansion suggest a bullish outlook, though traders should monitor leverage risk.
Bullish
The significant surge in Ethereum’s open interest and strong taker buy volume following a major Fed speech indicates renewed bullish momentum in both spot and derivatives markets. Historically, similar OI expansions during breakouts—like ETH’s 2021 high breach—have led to sustained rallies and price discovery phases. The combination of fundamental catalysts (Jackson Hole Fed comments) and technical confirmations (break above multi-year resistance, SMA alignment) suggest that traders are confident in further upside, pointing to a bullish near-term outlook. However, elevated leverage levels could trigger volatility if positions unwind, so risk management remains crucial. In the long term, if liquidity and trader conviction hold, ETH may target psychological levels around $5,000 and beyond.