Can Ethereum price go to $4K? ETH’s open interest surges as institutions turn bullish
Ether (ETH) futures open interest reached a record 9 million ETH on January 17, following a 10% increase over two weeks. This rise occurs amid Ethereum's retest of the $3,000 support level. Binance, Bybit, and Gate.io hold 54% of the market, while the Chicago Mercantile Exchange (CME) accounts for 10%. The annualized premium for ETH monthly futures increased to 12%, indicating optimism for Ether's recovery. The 25% delta skew for Ether options reached -4%, suggesting a balanced demand for bullish and bearish bets. The funding rate for Ether perpetual contracts is at 0.9%, reflecting neutral market sentiment. Softer inflation data has boosted confidence in ETH markets, with expectations for Federal Reserve interest rate cuts. World Liberty Financial's involvement in purchasing ETH also contributes to bullish sentiment. Despite an 11% price drop in the last month, ETH is positioned for a potential rebound towards $4,000.
