As of January 17, Ether futures open interest has reached a record 9 million ETH, showing a 10% increase over two weeks. This surge follows Ethereum's recent test of the $3,000 support level. While higher open interest reflects growing trader activity, it does not alone indicate bullish sentiment due to the balance of long and short positions in futures contracts. The annualized premium for ETH monthly futures rose to 12%, indicating optimism after Ethereum's price underperformance compared to the broader market. Additionally, the 25% delta skew for Ether options reached -4%, suggesting a neutral demand for bullish versus bearish positions. The balance in retail trading leverage also reflects cautious but stable market sentiment. Broader macroeconomic factors, including anticipated Federal Reserve rate cuts, further enhance confidence in the ETH market. Moreover, a crypto project associated with US President-elect Donald Trump has been purchasing ETH recently, boosting bullish sentiment. Despite an 11% drop in price over the past month, prospects for a rebound to $4,000 are seen as feasible in the near future, supported by this improving trader sentiment.

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