Published on september 21, 2024, 12:38 am
Image source: Fox News
```json [ "TLDR: Ether's price surged by 11.7% reaching $2,572, coinciding with a peak in futures open interest, raising concerns about potential price fluctuations. Positive market momentum driven by various factors, but economists are uncertain about US Fed policies. Despite economic worries from companies like FedEx, Ether futures interest hit a 20-month high. This surge doesn't necessarily indicate bullish sentiment but shows increasing retail involvement in ETH futures trading." ] ```
Altcoin news: Ether’s futures open interest hits 20-month high
Ether (ETH) experienced a notable surge of 11.7% between September 17 and September 19, reaching a three-week peak at $2,572. This increase in price coincided with a rise in Ether futures open interest, indicating the total number of contracts on derivatives exchanges. The heightened leverage associated with this surge has raised concerns among traders about potential price fluctuations.
The recent rally in ETH pricing mirrored an overall 8.3% gain in the cryptocurrency market, driven by factors such as a US interest rate cut and strong labor market data. This positive momentum also propelled the S&P 500 index to reach an all-time high on September 19. Lower interest rates benefit companies issuing new debt, alleviating worries about a stock market correction.
Despite these positive indicators, there is ongoing debate among economists regarding the US Federal Reserve’s management of economic growth and recession risks. This uncertainty has left cryptocurrency investors cautious about evaluating the effectiveness of the Fed’s monetary policies.
On September 20, FedEx saw a significant drop of 15% following disappointing earnings attributed to a weaker industrial economy and inflationary pressures affecting shipping services demand. Despite broader economic concerns, Ether futures open interest surged to its highest level since January 2023 at 4.66 million ETH, indicating strong leveraged position demand.
While the rise in Ether futures activity reflects increasing interest in leverage through contracts, it does not necessarily signal a more bullish sentiment among traders. The stability in ETH futures premium around 6% annually suggests little incentive for engaging in certain trading strategies despite recent price increases.
Presently, Binance and Bybit lead the Ether futures market with substantial combined open interest control hinting at significant retail involvement in ETH futures trading.
The current conditions suggest balanced leverage usage reducing immediate concerns about heightened market volatility despite increased interest in Ether futures contracts.
Original article posted by Fox News
