Ethereum has been doing well recently, mainly because Bitwise submitted an ETF application to the U.S. Securities and Exchange Commission, which made many people optimistic that the price of ETH may rise to $4,000 by December.
In the past 24 hours, ETH has gained 5.75%, reaching around $3,640 on November 28. As the second-largest cryptocurrency by market capitalization, it has outperformed the overall crypto market, which has gained 2.82% over the same period.
Bitwise files for 10 cryptocurrency index funds, including Ethereum
Ethereum’s recent rally has been fueled by investor optimism over Bitwise Asset Management’s recent exchange-traded fund (ETF) filing.
It is worth mentioning that Bitwise has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch an ETF based on its existing 10 cryptocurrency index funds. Since its establishment in November 2017, the fund has mainly invested in Bitcoin (75.14%) and Ethereum (16.42%), and the rest is distributed in other cryptocurrencies such as Solana, XRP and ADA.
In the past 24 hours, the prices of most cryptocurrencies proposed for inclusion in the ETF have seen significant increases, showing the market's growing expectations and optimism that the fund may be approved.
Ethereum open interest hits all-time high
The rise in Ethereum’s price has not only boosted the enthusiasm of the spot market, but also the open interest (OI) in its futures market has reached a record high. As of November 28, OI has exceeded $24 billion, and in the past 24 hours, OI has increased by more than $4 billion.
Ethereum’s weekly funding rate has remained positive since October, and as of November 28, the funding rate was around 0.53%. This shows that the market demand for Ethereum futures remains strong and investors are optimistic about its future prospects.
Record open interest (OI) and persistently positive funding rates are creating a positive feedback loop: bullish sentiment is driving increased market participation, which in turn is further driving up Ethereum’s price.
These dynamics may also reflect broad investor confidence in the Ethereum ecosystem and its future development, which further supports the price increase.
Ethereum price is expected to rise by 10% by December
Today’s price increase, in addition to being driven by strong technical support, also benefited from the breakout of a bullish chart pattern. Ethereum has rebounded from the 50-period exponential moving average (EMA) on the four-hour chart, a key support level that played an important role in its recent uptrend.
Furthermore, Ethereum has now entered the breakout phase of a cup-and-handle pattern, which is a classic bullish continuation pattern. This pattern has been gradually forming over the past few weeks, and the breakout occurred when the price broke through the neckline level of $3,440.
Typically, a cup-and-handle breakout predicts an upside price target based on the depth of the cup, meaning Ethereum’s target price could be close to $3,940.
In other words, Ethereum’s price could rise by more than 10% in December, further supporting the market’s optimistic expectations.