The open interest metric refers to the number of futures contracts/options which are held by investors’ inactive positions, therefore a rising value indicates their growing interest and an inflow of additional money into the market — Ethereum in this particular case. High open interest also indicates high market activity since traders keep opening new positions.
A recent X post published by on-chain data vendor Glassnode shows that
Most likely, high open interest indicates a bullish trend, however, sometimes it may signify an upcoming change of trends from bullish to bearish as well, if the IO metric becomes too high.
📈 #Ethereum $ETH Futures Contracts Open Interest just reached a 1-month high of $125,397,615.99 on #BitfinexPrevious 1-month high of $125,329,725.40 was observed on 15 September 2023View metric:https://t.co/FVI1qN3bra pic.twitter.com/MNnAGc867P
— glassnode alerts (@glassnodealerts) September 16, 2023
Aside from that, Glassnode also registered an increase in new ETH investors. According to another X post published earlier today, the total count of ETH non-zero wallets has surged to an all-time high of 106,018,155.
Over the past week, the Ethereum price has demonstrated a rise by more than 7%, surging from $1,538 to the $1,650 level. However, earlier today, ETH saw a sudden marginal decline and is now trading at $1,634.