Ethereum Breakout: Bullish Momentum or Bear Trap?

Ethereum has reclaimed the $1,800 level after a strong rally on June 15, which saw it jump by 4.07%.

This move came as market sentiment shifted back to risk-on, with many investors positioning themselves for the next big move in the market.

Data from CryptoQuant shows that Ethereum's open interest jumped by 7.7%, its largest daily increase in a month, suggesting that new positions are being taken on the asset.

However, much of this activity appears to be driven by speculative leverage rather than spot demand, as highlighted by trader Ansem's highly publicized short position targeting a move towards $888.

But Ethereum has defied expectations and moved decisively against that positioning, sparking FOMO across the derivatives market with traders rushing to increase their exposure.

Institutional buying is also supporting Ethereum's breakout, with BitMine buying 76,881 ETH worth around $135.6 million last week, bringing its total holdings to 5.62 million ETH valued at nearly $9.9 billion.