Ethereum’s price has shown strong bullish momentum this week, displaying four consecutive daily green candles for the first time since early July. While these positive developments increase investors’ interest in Ether, they also give signals that market dynamics may change.

The rally in crypto assets began when the United States announced a 50 basis point interest rate cut, signaling the start of the global interest rate cut cycle. This situation increased investors’ risk appetite and caused them to turn to cryptocurrencies.

Ethereum’s open interest (OI) currently stands at $11.74 billion, which has increased by more than $1 billion in less than a week. Previously, Ether’s OI was over $11 billion on August 5 when prices dropped to $2,111.

This increase suggests that futures traders are returning to Ether and aiming to capitalize on its potential for greater profits.

The derivatives market is playing an important role in the current rally. The rapid increase in financing rates in the last four days indicates the expectation of more long positions. While the derivatives market is currently determining the price movement, accumulated spot volumes remain flat.

This shows that traders are monitoring price movements in Ether more closely and taking action to evaluate possible opportunities.

Ethereum’s DeFi activity experienced a significant decline in the third quarter; This activity fell from $60.5 billion to $42 billion in June. However, the total locked value increased by almost $4 billion in the last 48 hours to $48.33 billion.

This increase shows that Ethereum’s potential in the DeFi field is still alive and investors’ interest in this sector continues.

From a technical perspective, independent analyst Kingpin Crypto notes that Ether’s long-term market structure is promising. Although ETH’s year-to-date returns are flat for a short time in 2024, the analyst states that it is currently testing a strong demand zone.

“ETH Weekly chart looks great, price is clearly in a demand area. “If the price can rise above $2,750, I think it definitely makes sense to invest all my capital in Ethereum,” he says.

In the last 24 hours, Ethereum price closed above $2,464, breaking a descending resistance trend line, indicating that the structure (BOS) was broken. BOS signals a possible bullish trend change.

Ethereum is showing bullish signals by breaking out of a lower high trend. Post-BOS, Ethereum also broke above the 200-day EMA, further confirming the uptrend.

Ether’s short-term target is currently $2,800, but a possible pullback could take ETH to the appropriate value range at $2,400, which overlaps with the 0.50-0.618 Fibonacci range. This shows that investors need to take a more careful and strategic approach to the future of Ether.