Ethereum (ETH) price has shown strong bullish momentum this week, with four consecutive green candles for the first time since early July. The crypto asset’s rally began after the United States announced a 50 basis point interest rate cut, signaling the start of a global interest rate easing cycle.

Ether OI increases by $1.3 billion

Ethereum open interest is now $11.74 billion, after rising by more than $1 billion in less than a week. Ether OI previously surpassed the $11 billion mark on August 5, when the price dropped to $2,111.

The increase in open interest suggests that futures traders are returning to Ether, eager to capitalize on its upside potential. Derivatives markets have played a key role in the current rally, with funding rates rising rapidly over the past four days, suggesting more bullish bets.

The derivatives market is currently driving the price, with cumulative trading volume currently flat at the moment.

Ethereum TVL Increases by $4 Billion in 48 Hours

Ethereum DeFi activity declined in Q3, down to $42 billion from a high of $60.5 billion in June. However, total value locked has rebounded sharply, increasing by about $4 billion to $48.33 billion in the past 48 hours.

ETH Price Breaks Out, Aims for $2,800

From a technical perspective, Kingpin Crypto, an independent analyst, believes that Ether's long-term market structure looks very promising. Although ETH's year-to-date returns have been flat for the time being in 2024, the analyst suggests that it is currently testing a strong demand area. He said,

“ETH weekly looks amazing, price wise it's clearly in demand zone. If price can get back above $2,750 it's a can't miss opportunity to go all in on Ethereum imo.”

Over the past 24 hours, Ethereum price broke above a descending resistance line and closed a position above $2,464, completing a structure breakout (BOS). BOS indicates a possible bullish trend.

In this case, Ethereum broke above the lower-high trendline, which means the market is showing a bullish structure. After the BOS, Ethereum also broke above the 200-day EMA, which further confirms the bullish trend.

Ether’s immediate target is currently $2,800, but any correction could bring ETH to its fair value at $2,400, which coincides with the 0.50-0.618 Fibonacci range.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.