Important points
- Ether is trading above $3,600 after rising 6% in value over the weekend.
- The coin could rise towards $3,900 as technical indicators are giving bullish signals.
Robust derivatives market signals bullish trend
Cryptocurrency markets are off to a strong start this week, and this is reflected in the futures and options markets. The Ethereum futures and options market has been very strong, with futures open interest (OI) surging to approximately $40.11 billion across all exchanges, which equates to a total exposure of approximately 11.5 million ETH.
Data obtained from Coinglass reveals that major cryptocurrency exchange Binance has the highest open interest in terms of daily trading volume at $8.15 billion, followed closely by CME at $7.57 billion.
The increase in trading volume suggests that more institutions are increasing their exposure to the Ethereum market.
In addition, the options market is also bullish, with calls accounting for 65.05% of the total open interest and puts 34.95%. There is approximately 2.1 million ETH in the call option and 1.13 million ETH in the put. This suggests that most traders are expecting a spike in Bitcoin prices in the short term.
Traders are expecting new all-time highs for Ether in the near future, with many expecting the major altcoin to trade between $4,000 and $6,000 by the end of the year. At the time of writing, ETH is trading above $3,600 per coin.
ETH focuses on $3,900 as technical indicators turn bullish
The ETH/USD 4-hour chart is bearish and efficient as Ether has shown positive performance in recent days. Technical indicators have turned bullish on the 4-hour chart, suggesting a buy bias at the moment.
The RSI of 63 indicates that buyers are currently in control, and if the bullish bias continues, Ethereum could soon enter overbought territory. The MACD line is also within positive territory, indicating a strong bullish bias.
If the recovery continues, ETH could rally toward the next major resistance level at $3,910 in the coming hours or days. If the rally continues, Ether could reach the TLQ and key resistance level at $4,271.
However, if the market hits a correction, ETH could lose momentum and fall to Friday’s lows of $3,197.
ethereum price Author: TradingView