Ethereum open interest vs. ETH price, December 5, 2024, |Source: Coinglass
Ethereum’s open interest increased by $2.09 billion in the past 24 hours, reaching an all-time high of $25.86 billion as of press time on December 5th.
Furthermore, after President Trump announced Paul Atkin as Gensler's replacement, more than $52 million worth of short ETH positions were rapidly liquidated, compared to a long position of $16.8 million on December 4th. Ta.
When a spike in open interest coincides with a large short liquidation, it signals a shift in Ethereum's prevailing market sentiment from bearish to bullish, catching bearish traders off guard.
A huge chunk of the $2.09 billion inflows recorded in the past 24 hours came from large companies such as hedge funds and institutional investors entering the market hoping for fairer regulatory oversight under Paul Atkins. This shows that demand is increasing.
If inflows continue, Ethereum price could rise further towards its current high of $4,379, recorded in November 2021.
Analysts suggest $4,000 rise
Ethereum (ETH) Price Prediction: Analysts Suggest $4,000 Breakout Still Underway
Ethereum is expected to rise above $4,000 due to several key factors, including record institutional investor inflows into Ethereum ETFs, significant whale accumulation, and increased institutional interest in potential staking-enabled ETF products. It appears to be in a bull market with the potential to break above the level.
Technical analysis from multiple sources indicates that ETH could test resistance near its all-time high of $4,867 in the near term, especially after Bitcoin recently surpassed $100,000. Suggests. This outlook is supported by increased Layer 2 volumes and a strong DeFi TVL index, which reached a two-year high.
However, a key risk factor remains regulatory uncertainty, particularly regarding the SEC's stance on staking consolidation for ETF products, which could have a significant impact on institutional adoption rates and price momentum. be.
– Juan Pellicer, IntoTheBlock Senior Research Analyst
Technical indicators confirm that Ethereum’s price trend is nearing an important inflection point, as shown by the weekly chart forming a large upward triangle, a bullish continuation pattern. ETH is currently testing the upper end of this multi-year sell wall near $3,950, a level that has historically served as a major resistance.
A definitive breakout above this trendline could coincide with the measured moving objective of this pattern and open the door to an upward move towards the $4,500 to $5,000 range.
