Key points:
Ether’s price outperforms the wider crypto market with 4% gains over the last 24 hours to hit a three-month high of $2,789 on May 29.
ETH record open interest, rising funding rates and consistent inflows into spot Ethereum ETFs fuel the rally.
A classic bullish continuation pattern suggests a potential 46% climb toward $4,000 as ETH reclaims key support.
Ether’s (ETH) price topped $2,780 on May 29 for the first time since Feb. 24.
Ether was trading at $2,722 at the time of publication, up more than 4% in the last 24 hours and 50% over the last 30 days. Its daily trading volume has jumped 10% to $26.5 billion, suggesting increasing trader interest in the altcoin.
Let’s look at the factors driving the ETH price up today.
ETH open interest hits all-time highs
Besides ETH’s price strength, Ether futures open interest (OI) hit a record high on May 29. This suggests that large investors are positioning for a potential rally toward $3,000.
The aggregate OI in Ether futures rose 17% over five days, hitting a record $37.3 billion on May 29. Binance, Gate.io, Bybit, and Bitget collectively dominate 51% of the market, while the Chicago Mercantile Exchange (CME) holds 8% of ETH open interest, according to CoinGlass data.
Also backing Ether’s upside are positive funding rates in ETH perpetual futures markets. Funding rates represent the periodic payments exchanged between long and short-position holders. This metric has increased to 0.0050% from $0.0090% over the same period.
This rise in OI shows more traders are entering the market and opening new positions. Higher funding rates indicate that more traders are going long (betting on higher prices) and are willing to pay to keep those positions open.
Both metrics signal bullish bias among ETH futures traders.
Ether price boosted by high ETF inflows
Adding to Ether’s bullish momentum on May 29 is the significant inflows into US-based spot Ethereum exchange-traded funds (ETFs) over the last week.
These investment products have recorded positive inflows for eight straight days, totaling $394.1 million, according to data from SoSoValue.
BlackRock’s ETHA fund, which witnessed net inflows since May 14, was the primary driver behind Ethereum ETF capital positive flows, with a total of $287.6 million in inflows over the last two weeks.
Additional data from CoinShares shows increased inflows across global Ethereum investment products, with $326.2 million between May 19 and May 23.
This points to an increased institutional appetite for spot Ethereum ETFs and other investment products, which is a positive catalyst for the ETH price.
Related: Ethereum bulls aim for $2.7K ahead of ETH’s $2.4B options expiry
Ether’s bull flags target $4,000
The ETH/USD pair is expected to resume its upward momentum after breaking out of a bull flag pattern on the daily chart, as shown in the figure below.
The pattern was confirmed when the price closed above the flag’s upper boundary at $2,650 on May 27, signaling the start of a massive upward move.
The flagpole’s height sets the target, which projects Ether’s price ascent to $4,000 or approximately a 46% increase from the current price.
Another bullish indicator is the relative strength index, which is moving within the positive region at 71, suggesting that there is still more room for the upside before extreme overbought conditions set in.
As Cointelegraph reported, Ether’s close above $2,600, the midline of the Gaussian Channel (a moving average-based band that tracks long-term momentum), is likely to open the path toward $4,100.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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