Why Is Ethereum (ETH) Price Up Today?
Ethereum (ETH) surged over 4% in the last 24 hours, reaching a three-month high of $2,789. The rally outpaced the broader crypto market, supported by a combination of technical indicators, surging futures activity, and strong inflows into spot Ethereum ETFs.
Bull Flag Breakout Suggests Potential Rally Toward $4K
Technical analysts point to the recent breakout from a bull flag pattern, a bullish continuation formation that typically precedes a sharp upside. The breakout was confirmed when ETH closed above $2,650 on May 27. Based on the flagpole’s height, the pattern sets a potential target near $4,000, implying a 46% rally from current levels.
Record ETH Open Interest Signals Trader Confidence
According to CoinGlass, Ether futures open interest (OI) hit an all-time high of $37.3 billion on May 29 — a 17% increase over the past five days. This uptick indicates that institutional and retail traders alike are positioning for further upside.
Key exchanges contributing to the OI include Binance, Gate.io, Bybit, and Bitget (accounting for 51%), while the CME represents 8% of the market.
Positive Funding Rates Reinforce Bullish Sentiment
Funding rates in ETH perpetual contracts have risen to 0.0090%, suggesting that more traders are betting long and are paying a premium to maintain those positions. Combined with rising OI, these metrics signal growing market optimism.
ETF Inflows Add Fuel to Ethereum’s Momentum
A major tailwind is continued inflows into Ethereum-focused exchange-traded funds (ETFs). According to SoSoValue, U.S.-based spot Ethereum ETFs saw $394.1 million in net inflows over the last eight days. BlackRock’s ETHA fund led the trend with $287.6 million added since May 14.
Additional data from CoinShares reported $326.2 million in global ETH product inflows between May 19 and May 23, reflecting strong institutional demand.
Outlook: ETH Eyes $4,000 As Technicals and Fundamentals Align
With ETH breaking key resistance, supported by robust ETF inflows and futures positioning, analysts suggest the next target lies between $3,000 and $4,000. A bullish relative strength index (RSI) reading of 71 indicates upward momentum remains intact — though caution is advised as ETH approaches overbought territory.
Ethereum is currently trading at $2,722, up 50% over the past month, with daily trading volume exceeding $26.5 billion.
