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Ethereum has found a new supporter in a high-profile name. This new supporter is actress Reese Witherspoon who tweeted, “Just bought my first ETH! Let’s do this #cryptotwitter” to her 2.9 million followers late Thursday. The entry of the actress, producer, and entrepreneur into the crypto scene could propel further mainstream adoption of cryptocurrencies. Ether is already enjoying a face-melting rally as it soared to $3,990 on Friday. The cryptocurrency has surged more than 130% in value ever since hitting July low. Ether is now very close to its mid-May all-time high of $4,380. Despite this, funding is still low though it has started to go up as leverage players begin to join the move higher with the highest currently at 0.151% on BitMEX, while on other exchanges, it is between 0.0227% and 0.0734%. Open interest on Ether futures is also at nearly 2.8 million ETH, $11.07 billion in USD terms, near May ATH of $11.6 billion, according to Bybt. OI on CME, however, is constantly hitting new highs for more than a month, currently at $852 mln. With a market cap of $465.6 billion, Ether sits at the second spot behind Bitcoin, which boasts of $941.4 bln market cap, trading around $50k, having recovered 77% from its July low. Due to this, ETHBTC trended upwards towards 0.0850 target level, sitting just below 0.08 as of writing. Its multi-year high was at 0.0825 hit on May 15.
Ether Dragging Others Up With It
The spot demand for Ether has been lately coming from the NFT mania as an unprecedented transaction amount of volume was recorded in the space. This can also be seen in the number of Ether burned. Out of the total 180k ETH burned since EIP 1559 implementation on August 5, more than 28,000 ETH were due to NFT marketplace OpenSea. NFT addresses are also the biggest gas guzzlers on the Ethereum network for the last couple of months. EIP-1559 itself works as a catalyst in attracting investors as Ether’s inflation downtrends, at times even lower than Bitcoin’s. Ethereum has grown a lot over the last couple of weeks which last week saw the London Upgrade. The second-largest network getting better and stabilized has facilitated more trust in Ethereum, said Chainalysis CEO Michael Gronager in an interview with Bloomberg. On top of that, DeFi has been growing and growing, not to mention a lot of financial innovation is happening on crypto, more than in the traditional finance world, which could further drive a lot of adoption, according to Gronager. This is pumping the interest in Ethereum, and then it is dragging along a lot of the other cryptocurrencies with it, he added. Despite the decisive rally, QCP Capital recommends that the market remains wary of potential downside risk as “ETH front-end risk reversals have flipped violently to the put side. With the speed of this move higher, a sharp mean reversion move would not be too surprising.”