On Dec. 4, Ethereum’s native token, Ether (ETH), rallied above $3,800 for the first time since June. With the relative strength index currently under the overbought region it is possible that Ethereum could rally to its overhead resistance at $4,000 in the short-term.
Ethereum open interest reaches $25 billion
Ether’s futures market open interest (OI) reached a new all-time high of $25 billion. Over the past 24 hours, the metric has increased by more than $1.3 billion, indicating newly added leveraged positions in the market.
Institutional interest also continued to remain evident for the altcoin after spot Ethereum ETF flows recorded a positive net flow of $132 million on Dec. 3. The ETH inflows were led by Fidelity’s FETH instrument with $73.7 million, followed by BlackRock with $65.3 million.
Likewise, Yonsei Dent, a crypto trader, said that a long-term Ethereum bullish market is on the horizon, as trading volumes for Ether ETFs have increased by roughly 300% in November, more than the combined periods of Q3 and October. The trader said,
“If institutional support for ETF inflows continues, Ethereum could surpass its previous ATH, following a trajectory similar to Bitcoin’s recent performance.”
Related: Why is the BNB price up today?
Will Ether top $4,000?
From a technical perspective, Ethereum’s recent bullish performance has undergone a series of repetitive patterns, each triggering a new yearly high.
Since Nov. 9, an ETH local top has preceded a lower high range, where a liquidity zone (orange box) has been established. This liquidity range acted as support before the next leg up, and the bullish confirmation was noted once the relative strength index (RSI) and the 50-EMA day or 100-day EMA were tested.
Related: Vitalik Buterin urges Web3 wallets to improve security, privacy
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.