Ethereum Defends Rally Above $2,300 Amid Rising Profit-Taking

Ethereum (ETH) continued its upward trend on Thursday as capital gradually flowed back into the derivatives market following the recent leverage flush.

The ETH open interest, which is the total worth of outstanding contracts in a derivatives market, has risen by 270K ETH to 13.2M ETH over the past few hours, with funding rates spiking to 0.011%, their highest level since late May.

This comes after the crypto market recorded its largest short liquidations in history on Wednesday, worth roughly $3 billion, with ETH short liquidations representing about 40% of that figure.

Despite rising profit-taking and exchange inflows, bulls are defending the rally as whale accumulation rises and exchange outflows increase.

Ethereum's price is targeting the $2,431 resistance after its recent rally, with momentum stretched due to overbought conditions on the daily chart. However, a clear break above this level would open the way for further gains.