Ethereum Climbs to $3,500, Signals Renewed Market Momentum Amid Bullish Activity
Ethereum (ETH) has surged to $3,500, reaching its highest price in four months. This milestone follows a series of bullish developments in the cryptocurrency market, including increased institutional participation and broader market optimism. Despite a slight dip to $3,475 shortly after reaching the milestone, Ethereum has gained 3.6% over the past day and 11.4% in the last week, outperforming its competitors among the top five cryptocurrencies by market cap.
ETH Open Interest
Ethereum’s Market Recovery and Investor Dynamics
The rally reflects intensified market interest, as evidenced by the $24.6 million in short liquidations over the past 24 hours, according to CoinGlass data. The renewed investor appetite also coincides with a significant inflow into Ethereum-based exchange-traded funds (ETFs). After a challenging six days of outflows totalling $222.7 million, ETFs recorded $91.3 million in inflows last Friday, marking a potential shift in market sentiment.
Ethereum’s year-to-date growth of 49% has lagged Bitcoin’s 133% and Solana’s 150%. However, its recent rally indicates a turning tide, with the cryptocurrency outperforming its peers over the past week. Analysts are watching closely to see whether this momentum can be sustained, particularly as Ethereum faces long-standing challenges related to scalability and high transaction fees.
Broader Crypto Trends and Political Influence
The cryptocurrency market has been buoyed by a broader wave of optimism following political developments in the United States. Donald Trump’s election as the 47th U.S. President has sparked renewed hope among crypto investors, as his administration promises a more supportive regulatory environment. Key proposals include establishing a strategic Bitcoin reserve and easing the U.S. Securities and Exchange Commission’s (SEC) scrutiny of digital assets.
Institutional Growth in Ethereum Futures
Ethereum’s rally has also been fuelled by heightened interest in derivatives markets. Ether futures open interest reached an all-time high of $22 billion, reflecting a 23% increase over the past month. The Chicago Mercantile Exchange (CME), which now accounts for $2.5 billion of this market, highlights growing institutional involvement. This trend is often viewed as a signal of market maturity and stability.
