Ethereum (ETH) Price Prediction: Open interest increases by 1.84 million ETH, possibly breaking resistance and rebounding to $3600.

Ethereum (ETH) reported 3,391 USD in the early Asian session today (17). The Ethereum funding company has accumulated over 570,000 ETH in the past two months. In July, the open contracts for Ethereum increased by 1.84 million ETH, while the financing interest rate remained moderate. Since the beginning of June, the total amount of ETH in the staking pool has surged by 1.51 million ETH. After breaking through a key barrier, ETH may break through the resistance level of 3,470 USD and rebound to 3,600 USD.

Strong interest from institutions and retail investors, ETH continues to rise

Ethereum continued its impressive performance on Wednesday, rising 10% in the past 24 hours, surpassing the top 20 cryptocurrencies by market capitalization (excluding Dogecoin). This trend has led to a weekly increase of over 25%.

Previously, several publicly listed companies with lower market capitalizations have started adopting the ETH reserve system. Over the past two months, Nasdaq-listed companies SharpLink Gaming (SBET), BitMine (BMNR), Bit Digital (BTBT), BTCS, and GameSquare (GAME) have raised more than $1 billion to launch their respective ETH reserves. According to data from the strategy ETH reserve website, these companies have purchased over 570,000 ETH during this period.

Thomas Lee, Chairman of BitMine's Board and Chief Information Officer of Fundstrat, stated in an interview with CNBC earlier this month that the move towards the ETH treasury stems from a favorable regulatory environment for Ethereum, particularly with the passage of the GENIUS Act. The bill was passed in the Senate in June, and if House members reach a positive resolution on the bill during the ongoing "Cryptocurrency Week", it may be sent to the President.

The attention on ETH government bonds continues to rise, triggering a chain reaction in both the ETH spot market and the derivatives market. The demand from institutional investors is steadily growing. According to data from SoSoValue, since May, the net inflow into US spot ETH exchange-traded funds (ETFs) has reached 3.27 billion USD.

The strong interest in ETH is also reflected in the derivatives market, where open interest (OI) has been rising steadily since the beginning of the month. Open interest refers to the total amount of open interest in the derivatives market. In July, Ethereum's open interest increased by 1.84 million ETH.

Despite strong position (OI) and price growth over the past week, ETH's funding rate has remained modest compared to previous increases. This suggests that the market is making a new position allocation without excessive leverage, which is a sign of a healthy upside.

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(Source: CryptoQuant)

At the same time, on-chain data also supports the price increase. Since the Ethereum Pectra upgrade in May, the trading volume of ETH has remained high.

Pectra's upgrade introduces several features to the Ethereum mainnet, including improved staking mechanisms for ETH. As a result, the staking volume of ETH has been on an upward trend over the past month. Between June 1 and July 15, investors injected a net 1.51 million ETH into the staking platform, more than a third of which may have come from money management companies.

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(Source: CryptoQuant)

ETH Price Analysis

FXStreet analyst Michael Ebiekutan stated that ETH has maintained a solid close above the key ascending trendline resistance level (continuing since May 13), and then started a new round of increase, expected to further approach $3,600.

ETH has also broken through the resistance level near $3,220 and is about to reach the next key level of $3,470. However, if ETH fails to hold the level of $3,220, it may fall back to the upward trend line. Further declines, supported by the 14-day Exponential Moving Average (EMA), may find support at the level of $2,850.

The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are both in the overbought territory, indicating strong bullish momentum. However, the continued fluctuation in the overbought zone also increases the risk of a pullback.

If the daily K-line closing price is below $2,500, the argument will fail, and if the support level of $2,400 fails, ETH may drop to $2,110.