Ethereum Open Interest Surges 10% as $3.18 Billion in New Positions Drive Fresh All-Time Highs

Derivatives markets signal historic momentum as ETH breaks above 2021 peak following Powell's dovish remarks at Jackson Hole

Etherium open interest this week source CryptoQuant

Ethereum has entered a decisive phase of its bull market cycle, pushing into uncharted territory after finally breaking above its previous all-time high of $4,860. The breakthrough comes as bulls regained control following a remarkable 14% single-day surge on Friday, marking one of the strongest daily performances for the world's second-largest cryptocurrency this year.

Federal Reserve Comments Spark Crypto Rally

The rally was triggered by Federal Reserve Chair Jerome Powell's dovish comments at the Jackson Hole Economic Symposium. Powell hinted at potential monetary policy easing, suggesting that restrictive conditions may no longer be appropriate as economic risks evolve. The market reaction was immediate and decisive: within minutes of the remarks, both equity markets and cryptocurrencies spiked sharply, with Ethereum leading the charge among major altcoins.

Market participants interpreted Powell's comments as a signal for potential interest rate cuts, creating favorable conditions for risk assets including cryptocurrencies. This dovish pivot has reinvigorated investor appetite for Ethereum and other digital assets, driving significant capital inflows across the crypto sector.

Derivatives Markets Show Explosive Activity

According to prominent analyst Maartunn, at least $3.18 billion in new positions flooded Ethereum derivatives markets within just 24 hours, pushing Open Interest (OI) up nearly 10%. The analyst described this influx as "insane stuff," highlighting the unprecedented scale and speed at which traders are positioning for Ethereum's next move.

Etherium price jump sourche Tradingview

This surge in open interest indicates aggressive speculation, with investors betting heavily on Ethereum's momentum continuing after breaching its 2021 peak. While higher OI typically fuels rallies by injecting liquidity into markets, it can also create sharp volatility if leveraged positions begin unwinding. However, the magnitude of these inflows reflects growing conviction among traders regarding ETH's upside potential.

Strong Buying Pressure Signals Sustained Demand

Ethereum's Taker Buy Volume reached a multi-month high of $5.76 billion on an hourly basis, demonstrating that demand extends beyond mere speculation to include immediate, aggressive market purchases. This metric captures buy orders that execute immediately against available sell orders, indicating strong conviction among buyers.

Such robust taker-side activity typically coincides with significant breakout phases, when bullish sentiment dominates both spot and derivatives markets. The combination of record open interest and elevated buy volume suggests institutional and retail investors are both participating in this rally.

Technical Analysis Reveals Bullish Structure

Etherium 4h chart sourche Tradingview

The 4-hour ETH chart shows Ethereum exploding higher, pushing decisively above $4,800 after a sharp breakout from recent consolidation patterns. This surge followed a successful bounce near the 100-period Simple Moving Average around $4,298, where bulls defended critical support before launching the vertical move.

Ethereum is currently retesting its previous all-time high region around $4,860, with technical indicators signaling strong buying pressure continues. The 50-period SMA is turning upward again, confirming a short-term bullish structure, while the 200-period SMA around $3,994 remains comfortably below current price levels, demonstrating the broader uptrend remains intact.

Price Discovery Mode on the Horizon

This rally successfully broke through a series of lower highs formed during the recent pullback, suggesting bearish control has completely faded. Volume spikes during the breakout add confidence to the strength of this move, with bulls clearly maintaining momentum.

If bulls sustain current momentum, Ethereum could enter price discovery mode, targeting the psychological $5,000 level as the next major milestone. However, technical analysis suggests that rejection at the $4,860 resistance could lead to a retest of the $4,400-$4,500 support zone, where key moving averages converge.

Market Outlook and Risk Considerations

The current phase represents a critical juncture for Ethereum: the cryptocurrency will either continue its breakout toward new highs or consolidate before attempting another upward move. Bulls clearly hold the advantage following this explosive breakout, but market participants should monitor open interest levels to ensure leverage doesn't reach excessive levels.

Derivatives market data confirms the intensity of current price action, with the sudden influx of liquidity adding substantial fuel to Ethereum's rally. As ETH ventures into uncharted territory, analysts suggest potential for continuation exists as long as open interest expansion doesn't overheat into dangerous leverage levels.

The coming weeks will determine whether this breakout sustains or develops into another volatile correction, as Ethereum attempts to establish new price ranges above its previous peak. Market structure suggests bulls maintain control, but careful monitoring of derivatives metrics will be crucial for assessing rally sustainability.

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