Ethereum Price Forecast: Derivatives interest in ETH improves, but signs of caution remain
Ethereum price today: $1,880Ethereum shaved 3% off its market cap on Thursday following an increase in open interest and brief negative funding rate flip.Four consecutive days of inflows into US spot ETH ETFs indicate continued recovery in institutional demand, but spot sentiment in the region has yet to flip positive.ETH fails to clear the 100-day EMA overhead. Ethereum (ETH) is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoins open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7. Open interest is the total worth of outstanding contracts in a derivatives market. Earlier in July, when ETH began its recovery, OI remained flat before the slight rise this week. ETH Open Interest. Source: Coinglass A similar trend is noticed in the Estimated Leverage Ratio (ELR), which has largely remained flat before a slight rise over the past week. The ELR measures an assets open interest compared to its exchange reserves to give a view of the amount of leverage traders are using relative to spot pressure. ETH Estimated Leverage Ratio. Source: CryptoQuant Funding rates have also been largely positive throughout the month