Growing Ethereum Open Interest Points to Bullish Momentum

• Ethereum’s open interest is surging, indicating growing trader interest.
• Rising open interest reflects bullish sentiment, potentially supporting Ethereum’s price.
• Ethereum Futures ETF approval by the SEC drives price optimism, with a 9.61% predicted increase by October 16, 2023.

Renowned crypto asset market data provider Kaiko has closely monitored Ethereum’s (ETH) open interest, showing a gradual and consistent increase since September 2023. As of the most recent data, more than 2.2 million contracts have been recorded, indicating a substantial rise in open interest over the past few weeks.

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Open interest in crypto trading encompasses the total number of outstanding derivative contracts tied to a specific digital currency, such as Ethereum. These derivatives derive their value from the underlying asset, and the open interest data includes figures from various sources, including ETH options, futures, and perpetual futures, often allowing traders to employ leverage.

Interpreting open interest can be nuanced, as it involves both long and short positions, making it challenging to gauge market sentiment accurately. Nevertheless, the ascending open interest figures suggest an increasing number of traders actively participating in the market, a trend typically associated with bullish sentiment, particularly when combined with expanding prices.

A key driver behind this growing optimism is the United States Securities and Exchange Commission’s (SEC) recent approval of Ethereum Futures exchange-traded funds (ETFs). This milestone marked the first time the SEC approved multiple Ethereum Futures ETFs, prompting a noticeable uptick in Ethereum prices in early October.

As per CoinCodex‘s current ETH price prediction, a further price increase of 9.61% is anticipated by October 16, 2023, with Ethereum’s value projected to reach $1,725.60.

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