ETH Longs Hit a New ATH as Price Surges to 5-Month High, Just as Ether Locked in DeFi Peaks at 4 Million

As Ether price rises to February level, derivatives break $900 million in volume and open interest is back to before crash March level nearing $1 billion. Also, the total ETH locked in DeFi hit a new high at 4 million — 3.5% of the circulating supply of Ethereum.

Ether is on a ride this week.

After nearly a month, ETH/USD hit $250 today. At the time of writing, the second-largest cryptocurrency has been trading at $265, last seen on February 24.

The five-month high came after bitcoin moved one leg up, but while BTC only moved about 2%, Ethereum is up over 9% and recording 102% gains YTD in comparison to BTC’s just 30% greens.

“Really nice impulse on the breakout. I ultimately think this will clear us near $365, but next step is to see how we behave at the $278-$290 range,” said trader Jonny Moe.

However, the trader DonAlt says it is “probably time to play the range again.” As such, Ether still needs to make a stronger and much clearer move to the upside.

The spike in Ether’s price saw it temporarily decoupling from bitcoin for the first time since April.

However, at the same time, nearly 700k ETH worth almost $183 million were moved by the top 100 whales in the past three days. Not a good sign for ETH price, according to Santiment, “this was likely pre-pump positioning & a forewarning of the pump.”

Amidst these gains, ETH longs on Bitfinex hit yet another all-time high in notional value of $488 million, seeing an increase of 10% in a fortnight, growing throughout 2020 but especially after the March crash when the digital asset went down to $100.

Tradingview-ETH
Source: TradingView

The jump in Ether’s price saw many positive developments, including breaking $900 million in volume across derivatives. Also, the aggregate open interest on ETH futures has risen to March level, before the crash, with a $1 billion break looking imminent, as per Skew.

While the price has moved only now, the daily gas usage on the network has been already at peak, remaining over the 70 billion mark for the past month — an increase of almost 2x compared to the beginning of the year noted Glassnode.

This persistently high demand for computations on Ethereum is the result of the ongoing DeFi (decentralized finance) craze.

Interestingly, the total ETH locked in DeFi has reached a new ATH as well at 4 million — 3.5% of the circulating supply of Ethereum, as per DeFi Pulse. This growth has been going on since June 11th, when 2.5 million ETH was locked in the sector.

Source: DeFi Pulse

However, this DeFi boom, along with stablecoin issuance surging past $12 billion, is putting pressure on the network as seen in the gas usage and network fees, which have skyrocketed to record levels.

This further calls for the urgency of the launch of Eth 2.0. Although the official launch date is still not confirmed and could be November 2020 or January 2021, the testnet release is just about here, scheduled for August 4th.

Ethereum (ETH) Live Price

1 ETH/USD =$388.3103 change ~ -0.69%

Coin Market Cap

$43.53 Billion

24 Hour Volume

$2.27 Billion

24 Hour VWAP

$392

24 Hour Change

$-2.6758

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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