Key takeaways
- Ether is trading above $3,600 after gaining 6% in value over the weekend.
- The coin could rise toward $3,900 as technical indicators show bullish signals.
Strong derivative markets point to an upward trend
The cryptocurrency market started the week on a strong note, which is reflected in futures and options activity. Ethereum futures and options markets show bullish sentiment, with total open interest (OI) in futures rising to roughly $40.11 billion across exchanges—equivalent to nearly 11.5 million ETH in total exposure.
Data from Coinglass indicates that Binance, the largest crypto exchange by daily trading volume, holds the largest open interest at $8.15 billion, while CME follows closely with $7.57 billion.
This rising volume suggests that more institutions are increasing their exposure to the Ethereum market.
The options market is also optimistic: call options represent 65.05% of total open interest while put options account for 34.95%. There are almost 2.1 million ETH in call options and 1.13 million ETH in puts. These figures indicate that a majority of traders expect short-term price appreciation for Ethereum.
Many traders anticipate a new all-time high for Ether in the near term, with a sizable group expecting the leading altcoin to trade between $4,000 and $6,000 by year-end. At the time of writing, ETH is trading above $3,600 per coin.
ETH eyes $3,900 as technical indicators turn bullish
The 4-hour ETH/USD chart has shifted to a bullish tone as Ether has posted gains in recent days. Technical indicators on the 4-hour chart have become more positive, signaling buying momentum at present.
A 63 RSI shows buyers currently in control, and Ether could soon enter overbought territory if the upward trend continues. MACD lines are also in positive territory, reinforcing a strong bullish trend.
If the recovery continues, ETH could reach the next major resistance near $3,910 in the coming hours or days. A further extended rally could push Ether toward the TLQ level and the major resistance around $4,271.
However, if the market undergoes a correction, ETH could lose momentum and fall back to Friday’s low near $3,197.