Ethereum futures open interest has surged 26% to $25.4 billion as prices hold above $2,300, signalling renewed activity despite lingering scepticism.
The rally has been driven largely by institutional demand, with Ether ETFs recording $248 million in inflows and Bitmine Immersion acquiring $312 million worth of ETH.
However, derivatives data remains cautious, with funding rates frequently turning negative, indicating traders are still positioning for downside despite rising prices.
Ether has rebounded from $1,940 lows in late March but continues to face resistance near $2,400, a level it has failed to reclaim for over two months.
Weak network fundamentals are also weighing on sentiment, with Ethereum decentralised application revenue falling to $11 million per week from $24 million earlier this year.
Competition from emerging blockchains such as Hyperliquid and Plasma is raising concerns about Ethereum’s long-term dominance in decentralised applications.
While institutional inflows support the rally, mixed signals from derivatives markets and declining on-chain activity suggest momentum may remain fragile.
At the time of reporting, Ethereum price was $2,360.14.