Ethereum Nears $2,800 as Derivatives and Spot Demand Show Signs of Recovery

Ethereum has been showing signs of recovery as it approaches the $2,800 level. According to Cryptopolitan, expanding open interest in the derivatives market is a key signal behind Ethereum's recent rise. The token rose to around $2,770 amid a broader upswing in the cryptocurrency market, with trading volume reaching $21.9 billion, near the upper end of the past month's range.

Ethereum has seen significant gains this quarter, with its cumulative gain for the third quarter tallied at 74.6 percent. It is setting a higher price range in the third quarter after two consecutive weak quarters. The uptrend has continued in September, with Ethereum up about 11 percent this month.

Market sentiment shifted from fear to greed, with the indicator rising to 70. Ethereum's strength coincided with a trend where some tokens outperformed Bitcoin, linking to a broader recovery in the cryptocurrency market. In the derivatives market, Binance's share stood out, with total exchange open interest in Ethereum rising to $16 billion on CryptoQuant data.