**Ether (ETH) Surges Amid Market Optimism**
Ether (ETH) saw a significant 11.7% jump between Sept. 17 and Sept. 19, reaching a three-week high of $2,572. This rally coincided with an increase in Ether futures open interest, signaling heightened trading activity. The broader crypto market also gained 8.3%, boosted by a U.S. interest rate cut and strong labor market data.
Despite the bullish momentum, economists remain divided on the U.S. Federal Reserve's handling of economic growth and recession risks. This uncertainty keeps crypto investors cautious. Notably, Ether futures open interest hit 4.66 million ETH on Sept. 19, the highest since January 2023, indicating strong demand for leveraged positions.
Interestingly, the ETH futures premium has stayed stable around 6% annually, suggesting balanced leverage between long and short positions. This stability contrasts with late May's 28% ETH rally, which saw a surge in futures premiums due to excessive bullish leverage.
Currently, Binance and Bybit dominate the Ether futures market, holding a combined $11.9 billion in open interest. Despite the rise in open interest, the balanced leverage usage reduces fears of near-term volatility.