Ethereum News Today: Investor Risk Appetite Turns Bullish as Ether Nears $5K

Ethereum (ETH) futures open interest has surged to $69 billion, reflecting a significant increase in leveraged exposure and investor sentiment ahead of potential price milestones. This level of open interest, representing the total value of all open long and short positions in the futures market, underscores growing demand for directional bets on the second-largest cryptocurrency by market capitalization. The increase coincides with a 63% rise in Ethereum network activity over the past 30 days, which supports the argument for a possible breakout to $5,000 per ETH [2].

The recent price movement has led to $351 million in liquidations, primarily affecting bearish positions, as traders adjust their strategies in response to shifting macroeconomic expectations. Ether reached a nearly four-year high on Friday, fueled in part by a broader shift in investor risk appetite. The Nasdaq Composite Index rose 1.8%, signaling a reallocation of capital away from fixed-income assets and toward riskier, equity-related and crypto positions. Ether’s 33% gain over the last month further highlights the momentum, with three key indicators suggesting a potential continuation of the bullish trend [2].

Central to this momentum are expectations of a less restrictive monetary policy in the United States. Remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium have been interpreted as a signal that multiple rate cuts could be on the horizon. The CME FedWatch tool indicates that bond markets now price in a 45% chance of interest rates falling to 3.5% or lower by March 2026, up from 37% the previous week. Lower borrowing costs generally ease financial pressures on companies and reduce systemic risk, which could indirectly support asset prices, including Ether [2].

Ethereum’s on-chain activity has also shown signs of strength. Active addresses on the network increased by 26% over the past 30 days, and transaction volume rose by the same period. In comparison, other major blockchains like Solana and BNB Chain have seen more modest or even negative growth in these metrics. BNB Chain, for instance, reported a 50% decline in transaction volume, while Solana’s transaction count only increased by 2% [2]. These figures suggest that Ethereum remains the dominant on-chain platform in terms of activity and adoption.

Despite this positive on-chain momentum and robust futures market activity, some traders remain cautious. Ether is still below its November 2021 peak of $4,868, while other major altcoins like BNB and TRX have already surpassed their previous all-time highs. This divergence has led to a more cautious outlook among some market participants. However, analytics firm CryptoQuant notes that futures buyers have shown increased aggressiveness, with a notable rise in the volume of buy orders executed against pending sell offers, signaling growing conviction in the asset’s upward trajectory [2].

Currently, the 30-day annualized premium for ETH futures stands at 7%, indicating a slight shift toward bullish positioning after a bearish 4% rate earlier in the week. This premium reflects the typical compensation for delayed settlement and serves as a real-time indicator of market sentiment. Meanwhile, the aggregate open interest in ETH futures remains steady at 14.4 million ETH, indicating sustained demand for leveraged exposure. As the market continues to navigate macroeconomic signals and on-chain momentum, the potential for a breakout above $5,000 remains a focal point for traders and analysts alike [2].

Source: [1] Aggregated Open Interest of Ethereum Futures (https://www.theblock.co/data/crypto-markets/futures/aggregated-open-interest-of-ethereum-futures-daily) [2] ETH data and return of investor risk appetite pave path ... (https://cointelegraph.com/news/eth-data-and-return-of-investor-risk-appetite-pave-path-to-5k-ether-price)