Ethereum futures open interest hits 20-month high, but leverage demand remains balanced

BlockBeats news, on September 21, the price of Ethereum soared 11.7% between September 17 and September 19 to a three-week high of $2,572. This price trend coincides with the rise in the volume of open interest in Ethereum futures, which jumped to a 20-month high. As a result, traders began to worry that increased leverage could amplify potential price fluctuations.

Lower interest rates are conducive to ETH's bullish momentum, but the US economy remains at risk. The recent rise in ETH prices echoes the overall 8.3% rise in the cryptocurrency market, thanks to US interest rate cuts and strong labor market data. This momentum also pushed the S&P 500 to a record high on September 19. Lower interest rates reduce the cost of companies issuing new bonds, easing concerns about a possible correction in the stock market.