There has been a notable surge in activity in the Ethereum Name Service (ENS) derivatives market. ENS’ open interest has skyrocketed since it cratered to a year-to-date (YTD) low of $26 million on May 19. 

As of this writing, ENS exchanged hands at $31.49, ranking as the cryptocurrency asset with the most gains in the past 24 hours. 

Ethereum Name Service Witnesses Growth in Derivatives Market Activity

As of this writing, ENS’s open interest is $153 million, its highest level since the token launched. It initiated its most recent uptrend on June 25 after falling to a low of $73 million. It has since risen by over 105%.

Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. When it spikes, it means that more traders are entering into new positions. 

Read More: Ethereum Name Service (ENS): Everything You Need to Know

Amid the uptick in ENS’s open interest, the altcoin’s price has also increased. Its value has risen by more than 40% in the last seven days. 

When open interest increases significantly along with price movements, it often confirms the strength and continuation of the trend. For example, in an uptrend, a spike in open interest suggests that new buyers are entering the market.

ENS’ positive funding rate across cryptocurrency exchanges confirms that these new market entrants demand long positions. As of this writing, the token’s funding rate is 0.01%. 

Funding rates are a mechanism used in perpetual futures contracts to ensure an asset’s contract price stays close to its spot price. When they are positive, it means more traders are buying the asset, expecting a price rally than those buying and hoping for a decline. 

ENS Price Prediction: Is a 138% Rally on the Horizon?

At its current price, ENS trades at a level last observed in January 2022. In a recent post on X, crypto analyst Javon noted that the altcoin may soon witness a 138% rally toward the $76.12 price target.

However, this would occur only if the altcoin’s price stays above the breakout level without falling back below it. This would indicate strong support from ENS bulls and hint at the likelihood of a continued price rally. 

In the meantime, if the current uptrend is maintained, ENS’ next price point is $34.64.

If the token sees a decline in market activity, this bullish projection will be invalidated, and its price will trend downward toward $30.94.