Key takeaways:
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High network activity and a record stablecoin supply signal strong demand.
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Traders expect ETH to rally to all-time highs once $4,000 is broken.
Ether’s (ETH) price reclaimed the $3,800 level after dropping to $3,700 during the early Asian trading hours on Tuesday. Market analysts pointed to key data metrics that suggest that “ETH is ready to explode” to new all-time highs.
Ethereum open interest at record highs
Ether futures open interest (IO) hit a record high of $58 billion on Tuesday, indicating increased market participation and new money flowing into ETH futures contracts.
Aggregate OI in Ether futures has more than doubled since June 22, up 10% over the last two days. For context, three months earlier, on April 29, Ether’s OI was $20.75 billion when the price hovered around $1,800. Additionally, when Ether traded around $4,000 in December 2024, ETH futures open interest was only $31.5 billion.
Related: Evolving ETH futures data hints a potential rally to $5K
This metric just hit new record highs, suggesting increased demand for leveraged ETH positions.
“Open Interest just hit a new all-time high. The price is climbing. Leverage is stacking,” said crypto trader Merlijn The Trader in response, adding:
“This isn’t a normal breakout, it’s fuel for a vertical move. If you’re waiting for confirmation, this is the confirmation.”
ETH OI dominance has also “climbed to nearly 40%,” its highest in over two years, Glassnode wrote in part to a Tuesday post on X.
“This marks a clear shift in speculative focus, with capital rotating from $BTCto $ETH at the margin.”
#Ethereum open interest dominance has climbed to nearly 40%, its highest level since April 2023. Only 5% of days have seen a higher reading. This marks a clear shift in speculative focus, with capital rotating from $BTC to $ETH at the margin. pic.twitter.com/yNKLe9gJKt
— glassnode (@glassnode) July 29, 2025
Network activity is “through the roof”
Ethereum’s network activity continues to show strength, with active addresses increasing by 7.2% over the last 30 days, according to Nansen data. The average monthly transaction count has also increased by 16% over the same period to 43.3 million.
The weekly DEX volume also hit a 4-month high of $22.6 billion, according to DefiLlama, while the weekly App revenue hit a 6-month high of $89.8 million.
Stablecoin supply also reached an all-time high of $132.5 billion on Tuesday, signaling increased liquidity and demand.
“Ethereum network activity is going through the roof,” said popular analyst Elja in response to these onchain metrics, adding:
“This means $ETH new ATH is just a matter of time.”
Analysts expect Ether’s “extended rally”
Data from Cointelegraph Markets Pro and TradingView shows ETH trading around $3,800, up 6% over the last seven days.
As Cointelegraph reported, breaking $4,000 is key to ETH’s upside potential and sets the stage for a possible rally to new all-time highs.
“$ETH Slowly creeping its way up to those cycle highs,” Daan Crypto Trades said in his latest Ether analysis on X.
The trader was referring to the $4,000 resistance, which has rejected the price multiple times since February 2024.
Daan Crypto Trades explained that it would be” healthier” for ETH to consolidate below this level before breaking, as the rally has been sudden already.
“That way, it gives more room for a larger leg up afterwards. But either way, keep an eye out for that $4K-$4.1K region.”
According to market analysts Bitcoinsensus, ETH is ”ready to explode to the upside” as it shows strength for a breakout, above a multi-year trendline.
“With enough momentum, the breakout could lead to much higher prices for Ethereum in the upcoming phase of this cycle,” they added.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.