Ether (ETH) rose 11.7% between September 17-19, reaching a three-week high of $2,572. This price action coincided with a surge in Ether futures open interest, which reflects the total number of contracts on derivatives exchanges. This has led investors to be cautious that leverage could increase potential price volatility.

While the US interest rate cuts have supported ETH’s bullish momentum, the US economy remains a risk factor. The overall 8.3% gain in the cryptocurrency market was supported by the US interest rate cuts and strong labor market data. However, uncertainty remains over whether the US Federal Reserve is successful in balancing economic growth and recession risk.

In light of these developments, Ether futures open interest reached 4.66 million ETH on September 19, the highest level since January 2023. However, the futures premium has remained stable, suggesting that traders’ bullish expectations are limited.

How do you think these developments will affect Ether's future price movements? We look forward to your comments.