Ethereum (ETH) is making waves in the cryptocurrency market as it trades near $3,600, with analysts eyeing a potential rally toward the yearly high of $4,093. This upward momentum comes amid growing interest from US traders and institutional investors.
The Chicago Mercantile Exchange (CME) futures market for Ethereum has reached unprecedented levels, with open interest surpassing $2.8 billion for the first time in history. This milestone reflects increasing engagement from US-based traders, pushing the ETH CME futures premium to 14%.
Adding to the bullish sentiment, Ethereum ETFs have attracted substantial capital, recording net inflows of approximately $225 million over four trading days. Market participants appear to be implementing sophisticated trading strategies, including "cash and carry trades," which involve simultaneous spot buying and futures shorting to generate yields.
In a notable development, Tether has minted an additional 1 billion USDT on the Ethereum blockchain. The total USDT supply on Ethereum witnessed a remarkable 27% increase in November, reaching $70.2 billion - the highest monthly growth rate since 2021. This surge has enabled Ethereum to overtake Tron as the blockchain with the largest USDT supply.
Technical analysis suggests promising prospects for ETH. The cryptocurrency has broken above a key descending trendline resistance dating back to March 11. On the daily chart, ETH is approaching the $3,739 resistance level after confirming an inverted Head-and-Shoulders pattern, potentially setting the stage for a new yearly high of $4,522.
However, traders should remain cautious of potential market reversals. The $3,400 level serves as a crucial support zone, while a daily close below $3,000 would invalidate the bullish outlook. Recent market activity has triggered $26.87 million in liquidations, split almost evenly between long and short positions.
As institutional interest continues to grow and technical indicators remain favorable, all eyes are on Ethereum's next move toward its yearly resistance level.