ETH gets a boost to over $3.4k as open interest peaks

Ethereum (ETH) has experienced a significant price increase, reaching a three-month high of $3,359.11 and recovering ground lost in March and April. This surge is attributed to increased activity in the derivatives market, with open interest on crypto exchanges hitting a three-year peak above $22 billion, dominated by long positions. While this indicates renewed interest in ETH, it also carries the risk of potential liquidations, particularly for long positions. The initial price increase of ETH was triggered by a short squeeze which liquidated many short positions. Ethereum is becoming more attractive to larger investors and companies, some of which are building ETH treasuries, similar to Bitcoin. Some companies holding ETH in their treasuries, like SharpLink Gaming and BitDigital, have seen their shares rise following the ETH rally.