Ethereum (ETH) surged more than 4% over the past 24 hours to hit a three-month high of $2,789 on May 29, outperforming the broader crypto market. This bullish move follows a confirmed bull flag breakout on the daily chart, combined with record open interest in futures markets, rising funding rates, and strong inflows into spot Ethereum ETFs.
Key Drivers Behind Ethereum’s Price Surge
1. Bull Flag Breakout Suggests 46% Upside Potential
Technical analysts have identified a bull flag, a classic continuation pattern, which has now resolved to the upside. The breakout reaffirms ETH’s bullish momentum and points to a potential target around $4,000, provided key support levels hold.
“A confirmed bull flag with strong volume and sentiment could push Ethereum 46% higher from current levels,” noted analysts tracking the move.
2. Record High Open Interest in Ether Futures
On May 29, open interest (OI) in Ether futures hit a record $37.3 billion, signaling increased institutional participation and leveraged bets on higher ETH prices. According to CoinGlass:
- OI rose 17% in just five days.
- Major exchanges like Binance, Bybit, and Bitget command over half the futures market share.
- CME Group, favored by institutional players, holds 8% of OI, indicating Wall Street involvement.
Rising open interest without a sharp decline in price often indicates new money entering the market rather than existing positions being closed.
3. Rising Funding Rates Reflect Bullish Sentiment
Funding rates across major exchanges are consistently positive, with traders paying premiums to maintain long positions. ETH perpetual funding rates climbed from 0.0050% to 0.0090% — further confirming market-wide bullish bias.
Positive funding rates reflect traders’ confidence in further upside, even if it costs them more to stay long.
4. Spot Ethereum ETFs See $394M in Inflows
U.S.-based spot Ethereum ETFs recorded eight straight days of positive inflows, totaling $394.1 million, per data from SoSoValue. These investment products are bringing significant institutional capital into Ethereum and validating its long-term investment case.
Consistent ETF inflows suggest growing confidence in Ethereum as a regulated, mainstream asset class.
What’s Next for ETH?
With technical and on-chain indicators aligning, Ethereum appears to be entering a new bullish phase. If ETH can maintain momentum above key levels like $2,700–$2,750, analysts expect a continued push toward $3,000 and potentially $4,000 in the coming weeks.
However, traders should watch for short-term volatility, especially around macro events, ETF approval developments, or shifts in Bitcoin’s trend.