Ethereum open interest hits 20-month high — Is this bullish or bearish for ETH?

Ether’s futures open interest jumps to a 20-month high, but leverage demand remains balanced.

Ether (ETH) surged 11.7% between Sept. 17 and Sept. 19, hitting a three-week high of $2,572. This price movement coincided with an uptick in Ether futures open interest, reflecting the total number of contracts on derivatives exchanges. As a result, traders are becoming wary that heightened leverage could amplify potential price fluctuations.

The recent ETH price rally mirrored the broader cryptocurrency market’s 8.3% gain, fueled by a combination of an interest rate cut in the United States and robust labor market data. This momentum also propelled the S&P 500 index to close at an all-time high on Sept. 19. Lower interest rates reduce the cost for companies to issue new debt, easing concerns over a potential stock market correction.

However, economists remain divided on whether the US Federal Reserve (Fed) is effectively balancing economic growth and recession risk, according to a report by Yahoo Finance. This ongoing uncertainty has left cryptocurrency investors cautious, questioning whether it’s too early to assess the success of the Fed’s monetary strategy.

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Ether’s futures open interest jumps to a 20-month high, but leverage demand remains balanced.
Ether (ETH) surged 11.7% between Sept. 17 and Sept. 19, hitting a three-week high of $2,572. This price movement coincided with an uptick in Ether futures open interest, reflecting the total number of contracts on derivatives exchanges. As a result, traders are becoming wary that heightened leverage could amplify potential price fluctuations.The recent ETH price rally mirrored the broader cryptocurrency market’s 8.3% gain, fueled by a combination of an interest rate cut in the United States and robust labor market data. This momentum also propelled the S&P 500 index to close at an all-time high on Sept. 19. Lower interest rates reduce the cost for companies to issue new debt, easing concerns over a potential stock market correction.However, economists remain divided on whether the US Federal Reserve (Fed) is effectively balancing economic growth and recession risk, according to a report by Yahoo Finance. This ongoing uncertainty has left cryptocurrency investors cautious, questioning whether it’s too early to assess the success of the Fed’s monetary strategy.Read more