Ethereum price today: $3,600
Ethereum CME open interest growth hits record high. Ethereum USDT supply recorded its highest monthly growth of 27% in November. After breaking above the key downtrend line, ETH could extend its rally and test the year-to-date high resistance at $4,093.
Ethereum (ETH) was trading near the $3,600 level on Friday, potentially triggering a rally that tests the year-to-date high resistance at $4,093. This rally is being driven by increased open interest on the ETH Chicago Mercantile Exchange (CME) and increased USDT supply on the main chain.
ETH CME Reaches New Milestone, Ethereum USDT Supply Surges 27% in November
Ethereum CME futures open interest (OI) has been rising since the US presidential election and rose in line with ETH last week. Ethereum CME open interest is an indicator of US investor interest in ETH derivatives.
Last week, ETH CME OI exceeded $2.8 billion for the first time in history, demonstrating high interest in top altcoins among US traders. The growing bullish mood also caused ETH's CME futures premium to rise to 14%.
Similarly, the Ethereum ETF continues its bullish momentum, recording nearly $225 million in net inflows over the past four trading days.
A potential reason for the simultaneous growth in ETH ETF and CME open interest could be that investors are taking advantage of high ETH futures premiums by leveraging so-called “cash-and-carry trading” as a yield-enhancing strategy. .
This involves buying ETH on the spot market (often via ETFs) and shorting the equivalent ETH on a derivatives exchange to achieve delta neutrality. As a result, investors can earn yield from the funding fees that short traders receive due to the high premium on ETH futures.
Meanwhile, on Friday, Tether minted another 1 billion USDT on the Ethereum blockchain. This follows a significant increase in the total supply of USDT on Ethereum, which increased by over 27% to $70.2 billion in November, the highest monthly growth rate since 2021. As a result, Ethereum became the first blockchain network to overturn Tron since 2022. It boasts the largest supply of USDT.
Ethereum USDT Total Supply | CryptoQuant
Ethereum Price Prediction: ETH Could Test Yearly High Resistance After Soaring Above Major Downtrend Line
Ethereum is trading around $3,600 after $26.87 million in liquidations in the past 24 hours, according to data from Coinglass. The long and short positions liquidated were $12.76 million and $14.11 million, respectively.
On the weekly chart, ETH has broken above the resistance of the key downtrend line that has been running since March 11th. If ETH sustains this move, it could move higher to test the year-to-date high resistance at $4,093.
ETH/USDT weekly chart
Meanwhile, ETH is approaching the resistance level at $3,739 on the daily chart. After confirming a reversal head-and-shoulders pattern last week, ETH could rise to a year-to-date high of $4,522 if it sustains the massive move above the $3,739 resistance.
Investors may need to be aware that a rebound from the $3,400 level is possible if the market turns bearish.
ETH/USDT daily chart
The Relative Strength Index (RSI) momentum indicator on the daily chart is above the neutral level and in an uptrend, indicating that bullish pressure is prevailing.
This hypothesis is invalidated if the closing price of the daily candlestick falls below the psychological level of $3,000.
Frequently asked questions about Ethereum
Ethereum is a decentralized open-source blockchain with smart contract capabilities. Its native currency, Ether (ETH), is the second largest cryptocurrency by market capitalization and number one among altcoins. The Ethereum network is tailored for building cryptographic solutions such as decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain technology that allows developers to build and deploy functional applications without the need for a central authority. To facilitate this, the network leverages the Solidity programming language and the Ethereum virtual machine, allowing developers to create and launch applications with smart contract functionality.
A smart contract is a publicly verifiable piece of code that automates an agreement between two or more parties. Essentially, these codes self-execute the coded actions if a given condition is met.
Staking is the process of earning revenue from idle crypto assets by locking them in a cryptographic protocol for a specified period of time as a means of contributing to security. Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism on September 15, 2022 in an event dubbed “Merge”. This merger was an important part of Ethereum's roadmap to achieve high levels of scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier to entry for validators by leveraging the use of cryptographic tokens as the core foundation of the consensus process.
Gas is a unit that measures the transaction fees users pay to conduct transactions on Ethereum. Gas can be very expensive when the network is congested, leading validators to prioritize transactions based on fees.
