The approval of the Ethereum [ETH] ETF has significantly increased interest in Ethereum, as evidenced by key market indicators. Furthermore, the recent rise in the price of Ethereum has also had a positive impact on the sentiment of futures traders.

Ethereum open interest increases

According to data, Ethereum holdings have fluctuated greatly recently. From July 2 to 8, ETH holdings fell from approximately US$12 billion to approximately US$9 billion.

Open interest represents the total number of derivative contracts, such as futures and options, that have not yet been settled.

However, there has been a clear recovery in the past few weeks, with open interest increasing by more than $1.5 billion. The latest data shows that open interest exceeds $11.8 billion.

That recovery was evident in the last trading day alone, with more than $10.9 billion invested.

An increase in open interest can mean increased interest or renewed confidence among traders. Market developments, such as the anticipation or aftermath of a major event like an ETF approval, often spur such increases.

An increase in open interest suggests new money is entering the market, which can be a bullish sign.

Ethereum funding rates jump to all-time high

According to data, there has been a significant surge in Ethereum futures funding rates over the past 24 hours.

As of this writing, rates have surged to about 0.0126%. That's the highest level since Aug. 8 and marks more than a month of significant gains.

A higher funding rate generally indicates strong demand for holding long positions. This suggests that traders are willing to pay more to maintain their positions, which indicates bullish sentiment towards Ethereum.

This increase can be seen as a positive sign, indicating that traders expect ETH prices to rise. Therefore, they are more inclined to buy futures contracts at a premium.

ETH up 3%

Recent analysis of Ethereum price trends shows a significant increase in its price, with the cryptocurrency up more than 3% in the past 24 hours.

According to the daily timeframe chart analyzed, Ethereum is trading at around $3,375, which is a 3.3% increase from its previous level.

The recent price gains have pushed Ethereum slightly into a bullish trend. As of the time of writing, relative strength index analysis shows that the index is above the neutral line.

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