ETH price spikes 5% to 8-day high on increased derivatives activity
Ethereum surges 5% to hit 8-day high, eyes resistance break at $3,
Ethereum’s price spiked over 5% on Thursday, reaching an 8-day high during early New York trading. This momentum positions ETH just above the $3,250 resistance level, a key barrier that has contained prices within a tight range on the $3,000 level for over a week.
The recent price action aligns with significant developments in Ethereum’s derivatives market. According to an analysis by CryptoQuant’s EgyHash, Ethereum’s open interest in derivatives soared by 40% over the past four months, surpassing $13 billion. This sharp increase signals growing interest from both retail and institutional players, further supporting the case for upward momentum.
Additionally, funding rates have turned moderately positive, indicating that long positions are gaining dominance. This trend shows a market sentiment leaning toward further price gains, though some caution is warranted.
Ethereum’s estimated leverage ratio, another key indicator, reached an all-time high of +0.40. This figure represents the ratio of open interest to exchange reserves and suggests higher risk-taking by market participants. While this underlines strong confidence in Ethereum’s potential, it also raises the stakes for sudden market moves, such as a long squeeze, if volatility strikes unexpectedly.
Ethereum price outlook targets $3,400 and beyond
Traders are now watching closely to see if Ethereum price will sustain momentum above $3250, potentially setting the stage for higher gains. The technical picture supports the narrative of bullish momentum. Breaking above the $3,250 resistance could turn this level into near-term support, opening the path toward the next target of $3,400. However, traders should note that the relative strength index (RSI) indicates overbought conditions, hinting that a potential price top might be forming. However, the derivatives market's growth could amplify Ethereum's upward trajectory, clearing key hurdles.
Ethereum remains steady above $3,000, maintaining investor optimism. Its consolidation within the $3,000–$3,250 range over 7 days signals a potential buildup for its next move.
