Ethereum Price Hits 2-Year High as ETH Futures Open Interest Tops $1.5B

[syedrasool2011]

Ethereum price surged to a two-year high at $445 and record open interest on ETH futures hints that the rally will continue.
Today the price of Ethereum’s Ether (ETH) hit a two-year high according to data from crypto trading terminal Crryptowatch. Despite the breakout to $445, open interest on ETH futures remains steady at a new record high of $1.5 billion.



ETH-USD 4-hour chart. Source: TradingView.com

The record high open interest on ETH futures hints that traders remain bullish and further gains could be seen over the coming days.

In recent months, Ethereum has seen strong momentum due to the explosive growth of the Decentralized Finance sector. The demand for Ether led to a sharp increase in gas (transaction fees) and this possibly added to demand for Ether.

On Aug 11, Santiment reported that Ether fees reached an all-time high in both ETH and USD terms. Since users have to purchase ETH to pay fees to miners, it could have acted as a catalyst for the rally. Researchers at Santiment wrote:

“On Tuesday, #Ethereum fees reached all-time high values in both $USD and $ETH. Since this record breaking statistic was hit, the #2 ranked market cap asset has risen +13% and sentiment has remained positive. This is an indication that although traders obviously prefer fees to be lower, the ramifications on people's willingness to transact via an asset they believe in (at least in the short-term) are fairly minimal.”

Following Ether’s breakout from a two-year range, traders generally anticipate a stronger uptrend ahead. A well-known trader called “Satoshi Flipper” said there is no hard resistance for ETH until $780. He said:

“2 years ETH spent in that range and we finally broke out No hard resistance until $780. This run has literally just started.”

Another pseudonymous trader known as “Byzantine General” said the open interest of Ethereum is still “massive.” He suggested that traders might still be anticipating a bigger price movement. He noted:

“ETH open interest is still absolutely massive. So that means... That... We haven't even seen ‘the’ big move yet?”

[Delgado]

Although recently the price of ethereum has dropped following the price of bitcoin, however, the expectation of the price growth of this coin is still very high.
Now everyone is waiting for the improvements of Ethereum 2.0, and if they are successful, the ethereum coin will be completely transformed and, first of all, the issue of its scalability will be radically resolved, which even at the initial stage will be a thousand transactions per second, and in two years it should reach one hundred thousand transactions per second ...
Then the popularity and price of ethereum should increase dramatically.