- Impact of Lower Interest Rates on the Market
- Stabilization of ETH Futures Premium
- Open Interest Distribution Across Exchanges
Ether (ETH) surged 11.7% between Sept. 17 and Sept. 19, hitting a three-week high of $2,572. This price movement coincided with an uptick in Ether futures open interest, reflecting heightened activity on derivatives exchanges.
Impact of Lower Interest Rates on the Market
The recent ETH price rally mirrored the broader cryptocurrency market's 8.3% gain, fueled by an interest rate cut in the United States and strong labor market data. Lower interest rates reduce the cost for companies to issue new debt, easing concerns over a potential stock market correction.
Stabilization of ETH Futures Premium
Despite the rise in ETH futures open interest to 4.66 million ETH, the highest level since January 2023, the futures premium has remained stable around 6% per year. This level suggests genuine demand for bearish ETH positions despite recent price gains, indicating balanced market expectations.
Open Interest Distribution Across Exchanges
Binance and Bybit lead the Ether futures market, controlling 30% and 17% of open interest respectively, indicating significant retail demand. OKX, Deribit, and the Chicago Mercantile Exchange (CME) collectively account for 24% of ETH futures open interest. This distribution reduces the likelihood of excessive volatility in the near term despite the overall rise in open interest.
Despite the notable price gains and increased interest in Ether futures, the market remains balanced, mitigating the risk of excessive volatility and reflecting the maturity of the current market cycle.
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