- Ethereum could surge to $4,900 soon.
- Unrealized profits boost investors’ confidence over a potential ETH rally.
- Surging OI values indicate investors are opening fresh ETH positions.
Ethereum may be on its way to a new all-time high if Glassnode’s latest analysis of the cryptocurrency’s price trend is anything to go by. According to the analysis platform’s latest post, ETH is trading near its March 2024 highs despite having lower unrealized profits.
Ethereum could surge to $4,900
Glassnode noted that if all other factors align, Ethereum would surge to $4,900 before matching last year’s unrealized profit, leaving the cryptocurrency with a massive upside potential. That would also imply a new all-time high and a push toward the $5,000 psychological level for the largest altcoin by market capitalization.
For context, unrealized profit in crypto describes the estimated profit of a given digital asset held by investors. It is a floating metric that becomes realized when holders of the cryptocurrency sell the asset or close their open positions on trading platforms.
Rising Open Interest also supports ETH bullish case
In the meantime, unrealized profit represents one of several indices that suggest a momentum build-up for Ethereum. Onchain data reveals that Ethereum’s open interest (OI) is the highest contributor in the widespread recovery across the top altcoins. The metric measures the amount of futures market positions related to a given asset or group of assets that are currently open on all centralized derivatives exchanges.
It is worth noting that a rising OI value suggests that investors are opening fresh positions in the market, probably anticipating further price rallies. Such a trend reflects a confidence boost, indicating that speculators are bullish on a crypto asset or group of assets. It is typically a positive signal during crypto market rallies.
What this means for the ETH price chart
Ethereum has maintained bullish momentum since it bounced off support in the last week of June. TradingView data show that the cryptocurrency traded for $3,862 at the time of writing, reflecting an 82.74% rally from the June swing low.
Investors expect the move to continue, while leading other top altcoins in the next phase of an established altseason.
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