Crypto Market 360

06/11 18:06

Ethereum (ETH) recovered from a sluggish start to

Ethereum (ETH) recovered from a sluggish start to Tuesday to register a substantial increase and cross $2,800 as bullish sentiment around the asset intensified thanks to growing institutional interest. However, the world’s second-largest cryptocurrency is back in the red during the ongoing session and is down over 1%, trading around $2,780. While ETH is trading in positive territory, new data  suggests it could face heightened volatility after ETH's open interest surged to an all-time high, indicating an increase in speculative activity. Alexia Theodorou, head of derivatives stated, 

“Open interest in ETH perpetual  reached an all-time high of 30,000 ETH earlier this week, signaling a notable uptick in speculative activity around the second-largest cryptocurrency by market cap.”

The spike in derivatives activity is likely due to growing institutional inflows into spot Ethereum ETFs. 

“While funding rates remain mildly bullish, the market has yet to form a clear directional consensus, with the long/short ratio still well below its January peak.”

ETH price action was mixed the previous weekend as it registered a marginal drop on Saturday before rising 0.44% on Sunday to settle at $2,539. Buyers retained control on Monday as the price registered an increase of almost 3% to cross the 20-day SMA and $2,600 and settle at $2,607. ETH registered a marginal drop on Tuesday as buyers lost momentum but recovered on Wednesday to reclaim $2,600 and settle at $2,607. Bearish sentiment returned on Thursday as ETH plunged over 7%, slipping below the 20-day SMA and settling at $2,415. Despite the bearish sentiment, ETH recovered on Friday, rising 2.63% to $2,479.

Buyers retained control on Saturday as the price rose almost 2% to reclaim $2,500 and settle at $2,525. However, ETH lost momentum on Sunday, dropping 0.57% to $2,511. ETH started the week on a bullish note, surging almost 7% to cross the 20 and 200-day SMAs and settle at $2,680. Bullish sentiment persisted on Tuesday as the price rose over 5% to cross $2,800 and settle at $2,816. The current session sees ETH down 1.53%, trading around $2,774. If sellers retain control, the price could slip to $2,500 or lower.

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