Altcoin investors should pay attention to these 3 factors: critical for ETH!

Spot Ethereum ETF expectations being approved in the US have caused ETH price to surge over 26% in the past two days, reaching levels not seen since March 15. Although the ETH price has retraced slightly since reaching $3,800, the possibility of Ethereum ETF approval, along with fundamental factors and on-chain metrics, indicates that the altcoin rally remains intact.

Increasing open positions support the upward trend in ETH.

"Factors supporting the rise of Ether include an increase in open long ETH positions in the futures market. Data from the Onchain platform CryptoQuant shows that the total open positions in Ethereum's derivative market have increased from 2.8 million ETH to 3.2 million ETH after a U-turn by the Securities and Exchange Commission (SEC) in the United States."

ETH open positions in USD have reached a record level of $14.68 billion. High open positions simply indicate that the underlying trend is strong and investors' confidence in Ethereum can continue.

CryptoQuant analysts said:

"Traders in the futures market aggressively opened long positions in Ethereum, expecting higher prices after rumors of the approval of a spot Ethereum ETF in the US in May."

Ethereum, Bitcoin started to gain dominance.

This week, the potential approval of a spot Ethereum ETF has sparked discussions among analysts about the possible effects on the price of Ethereum.

According to CryptoQuant analysts, there are now more buy orders for ETH in the permanent futures market compared to other order types. The chart below shows that the buyer-seller ratio is above one, indicating that buy orders in the perpetual futures market are now larger than sell orders. Additional data from CryptoQuant revealed that investors are now turning to Ethereum more than Bitcoin.

Similarly, data from TradingView shows that the ETH/BTC trading pair rose from $0.04572 on May 20th to $0.06471 on May 21st, reaching its highest level in two months with a 19.6% increase. This indicates that the price of Ether has strengthened against BTC.

Demand for Ethereum is increasing

CryptoQuant data shows that the demand for ETH has regained momentum with the increase in purchases from HODLers following the rumors of ETF approval. CryptoQuant defines HODLers as "addresses accumulating ETH and never selling." Popular analyst Ali Martinez also made similar observations and shared the chart below from Santiment, which shows the increasing accumulation of ETH by whales on May 20th.

This article does not contain investment advice or recommendations. Every investment and trading activity carries risk, and readers should conduct their own research when making decisions.